End of the Bull?

The saying goes like this: 'What do you call an Economist with a prediction?' Answer: 'WRONG.'

All sorts of predictions are flying about as the end of Bernanke's term nears. Generally, these predictions include: 1. the end of QE; 2. the end of the Bull Market and 3. a steep rise in interest rates.

If all things remained the same (except for the end of QE and the Bull) we could expect interest rates to rise. But (and this is an important but), the FED is riding a tiger and you can not get off the tiger without dire consequences. The other important feature is that now that Obama is re-elected, he sees no reason to change his stripes, so I expect him to appoint a Leftist such as himself as FED Chairman. From the Left's point of view, Bernanke did a fine job. He increased the money supply, goosed the Stock Market and kept the economy on a slow trek, which called for growing the government.

The wild card? Increased gas and oil production in the US. Fracturing rock opened up reserves even with Obama and Interior sabotaging exploration.  Short of banning frakking, Obama's hopes of a revolution won't come true.