Bernanke Comment Spawns Dead Cat Bounce

The market coughed up a cute little gain today. Traders are so desperate not to lose their nest eggs in this depression that they'll seize on any idle comment as a bullish sign. They'll even convince themselves that an upturn is possible this year:

Bernanke told Congress on Tuesday the recession might end this year, and that regulators aren't planning to nationalize banks.

I am under no such delusions. That's the advantage of being beholden to no portfolio but my own. Both of Helicopter Ben's assertions above are very likely false.

First, the recession has further to run. Home prices are still dropping like stones. Consumer confidence continues to plummet.

Second, regulators probably do have some kind of plan to nationalize banks. They just can't talk about it yet. They're still putting the finishing touches on the Treasury Secretary's non-plan to shore up banks by, uh, you know, throwing another $60B at AIG, and, well, you can guess the rest.

I bought more gold this week. I know people who think gold is expensive now. They'll be even more convinced it's expensive when it's over $2000 by this time in 2010 (IMHO).