Bernanke: Governments Will Need to Do More

Bernanke wants everyone to understand crystal clear that we had better not go thinking we have thrown enough money into the bank garbage heap, and that now it might be time to go fix the real economy. No, instead, he's insisting we have not spent nearly enough, and must resurrect the old TARP 1.0 idea -- monetize banking bad assets directly. Presumably, nothing will be "too much" to spend on the failing banks.

Likely the vacillation this reversal represents, plus the inevitable quality hit to US sovereign debt, is why Treasurys are actually down on the latest ill wind from Bernanke's word-hole.