Will Bernanke Fare Better Than Clemens?
Roger Clemens won’t be there, but Capitol Hill is sure to be full of excitement on Thursday as Treasury Secretary Hank Paulson and Fed Chief Ben Bernanke come to testify to the Senate Banking Committee.
Mike Darda, chief economist at MKM Partners, thinks Bernanke and Paulson (Along with SEC Chairman Christopher Cox) will present a unified front to Congress that they are working to offset risks and stresses from the credit markets.
The federal government is essentially “throwing money out of airplanes” with the economic stimulus package, according to Darda. That coupled with the Fed’s recent easing and the likelihood of more rate cuts on the way (he thinks another half-point is coming) could send markets higher after the testimony. That’s the path of least resistance, he said, and he recommended playing it by getting long emerging markets and financials.
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Trader disclosure: On Feb.13, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC), (YHOO), (DIS); Najarian Owns (BIIB), (C), (CSCO), (MCD), (MS), (MSFT), (YHOO), (XLF); Najarian Owns (AAPL) Calls; Najarian Owns (FRE) Puts; Finerman Owns (GS); Finerman's Firm Owns (AAPL), (GE), (MSFT), (WMT), (YHOO); Finerman's Firm And Finerman Own (HD); Finerman's Firm Is Short (SPY), (IJR), (IYR), (MDY), (IWM); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts