I think the most “captivating” part of Federal Reserve Chairman Ben Bernanke was not what he said, but what he omitted. Yes, the unusually uncertain comment captured the essence of why businesses aren’t hiring with European debt crisis, health care, Fin Reg and taxes all creating the miasma.
However, the chairman didn’t address or dwell on the Seinfeld economic theory of a double dip. He brushed off comments asking for details of what the Fed would do to stimulate the economy if it sank again from these levels. (Read Bernanke's Testimony Here)
This was the point I was attempting to make Wednesday on the Kudlow Report.
Bernanke effectively stated that deflation and a double dip for the economy are not in the cards right now and therefore no additional monetary stimulus is necessary.