[FairOpinion]

I agree with Kudlow. I think Bernanke will be good for the markets and the economy.

[upchuck]

Joining in this breakthrough vote was John McCain, the senator who voted against these tax cuts when they were introduced in 2003. This is an important shift for the GOP presidential frontrunner -- and another big win for pro-growth fiscal policy.

I disagree. McCainiac, like most of us, can see the handwriting on the wall. Got to give him credit for not being Stuck On Stupid.

[Moonman62]

Not a single mention of the yield curve. Maybe under Bernanke we'll have kinder, gentler, more compassionate recessions.

[Santiago de la Vega]

Some good comments above. Well done.

But, Kudlow talks politics more than economics. The nonsense about "spillover effects" is the babbling of a man who's forgotten that money causes inflation.

All the rest is hot air.

The bond market test is about the be proven. When the 10-year US note futures contract falls below 107.26, and the bond market malaise turns into panicked selling, the gasbags at the Fed will have to do some serious tightening, and I don't think they're ready for that.

This is gonna be fun, as long as you're not long the bond market.

[Santiago de la Vega]

Here's the latest bond market chart. Click on the thumbnail.



When the note contract breaks down, it's gonna get ugly.

Here's a longer view of the same contract that shows the support level more clearly.



If you've never seen a rout, pay close attention, cause we're about to get one in the bond market.