Fed Day is Here

Markets are all in a holding pattern as investors wait to see what Ben Bernanke has to say at 12:30 ET today.  It appears to be a foregone conclusion with investors that QE3 will be delivered.  However, the question is in what form and how much?  Interest rates are at historic lows, the S&P 500 is only 8% below its all time highs, but the economy remains stagnant and unemployment remains high.  One can argue how much worse things could be had there not been any stimulus, but the effectiveness of more money has many investors thinking it simply will not help.  Mortgage bonds are up slightly for the moment, but are sure to move within the next few hours when the announcement is made.  We will be on standby to lock today.