Ben Bernanke will again be front and center today.  He is testifying before the House Financial Services Committee, but as usual the prepared remarks look identical to yesterday’s prepared remarks for his appearance before the Senate.  The focus again is over “when the recovery will come” but we are more interested in just how the Fed and Treasury will treat the banks regarding calls for “nationalization.”

What is interesting is that Bernanke again argues that the recession should end in 2009 with a recovery starting next year. The caveat is IF actions taken by the government lead to financial market stabilization.  He calls this supposition key to the recovery.

Again, what we won’t be listening for the Fed’s predictions.  How accurate have they been?  This is particularly the case since the Obama speech last night is being judged by Wall Street as a likely attack on the financial system and corporate America.  We care mostly about the “nationalization” talk.

Stay tuned for Bernanke’s Q&A because that is more perhaps more important than a redux speech.  So far, the markets aren’t exactly expecting a saving grace.

DJIA          7,211.23 (-139.71; -1.90%)
S&P500    757.42 (-15.72; -2.03%)
NASDAQ   1,412.67 (-29.16; -2.02%)

Jon C. Ogg
February 25, 2009