Stocks Slump As Bernanke Admits "Doesn't Have Tools To Ease Fiscal Cliff"

Tyler Durden's picture

For the third time in a row, a speaker from the Fed has opened their mouth and the market has fallen in. This time, unlike Yellen's silliness, Bernanke admitted a few ugly truths by removing hopes for an IOER cut and bluntly explaining that the Fed 'will not go back to work' to help Schumer and his fiscal cliff buddies:

  • *BERNANKE SAYS FED ABILITY TO OFFSET HEADWINDS `NOT INFINITE'
  • *BERNANKE SAYS FED DOESN'T HAVE TOOLS TO PREVENT GOING OFF CLIFF
  • *BERNANKE SAYS HIS FISCAL ADVICE IS `DO NO HARM'
  • *BERNANKE: WRONG TO THINK INTEREST ON EXCESS RESERVES MAJOR TOOL

S&P futures fell around 8 points as he uttered these words but was rescued by some anxious BIS scrambling in EURUSD, before falling back to reality (along with AAPL).

 

S&P 500 futures...

 

Leaving S&P 500 futures at yesterday's day-session open...

 

and AAPL at yestereday's VWAP now...

Charts: Bloomberg