Helicopter Ben Flies In, Opens Mouth, Inserts Foot

Considering everything else he's done in the last year did jack shit, Bernanke's "Yeah, we're considering a rate cut" speech today drew a deafening "NO SHIT SHERLOCK!" from the rest of the universe, and the Dow promptly dropped like a rock, down over 300 with an hour to go.

Still, some people are actually surprised that a rate cut is being floated.

Bernanke said the economy is poised for subdued growth during the remainder of this year and into next year. Financial turmoil is likely to extend the weak period and increase risks to growth, he said.

"Continued efforts to stabilize the financial markets are essential," he said. "The Federal Reserve will continue to use the tools at its disposal to improve market functioning and liquidity," he added.

The chairman's comments drew surprise from some quarters.

"Despite the huge new programs to provide liquidity to the markets, the Fed Chairman just gave the green light for a rate cut at the October meeting if not before," said Bank of Tokyo-Mitsubishi economist Chris Rupkey. "When the risks to the economic outlook increase, this is the sign that policymakers are preparing the markets for a rate cut and not a moment too soon."

C'mon folks, this is Helicopter Ben here. The only question in my mind is 50, 75, or 100 BP rate cut, cause I can guarantee you one's coming before Monday.

[UPDATE] And the Dow dives across the finish line down 508. All the losses we avoided with yesterday's intra-day rally promptly caught up with us. Dow well under 9,500 at the close.