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The Sky Isn’t Falling: Sell Everything!

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It sounds like some sort of really dull rip-off of the Harry Potter series—Ben Bernanke and the Beige Book. Many were hoping that when the magical tome was opened today, it would reveal that we were headed for absolute catastrophe. A recession. Or worse.
Because then the Fed would have to whip out its magic rate cut wand and cast spells banishing the darkness of economic reality back to whence it came.
That’s the theory, anyway. But we’ll never know whether it would have come true. Because rather than pouring forth a vision of an avoidable apocalypse, the Beige Book told a tale of a modestly growing economy. Which promptly sent the Dow down 200 points.
It’s one of those cases where we learn how many of the fabulously wealthy among us have been perversely hoping for economic disaster, or at least a credible threat of one. Think Chicken Little. But levered up ten times.