Panic

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This is the sort of thing that gets people really hating stock market traders.

http://www.marketwatch.com/story/us-stocks-pare-gains-after-fed-hawkishness-2010-03-02

"Kansas City Federal Reserve President Thomas Hoenig reiterated . . . that the Federal Reserve should not guarantee zero-percent interest rates for an extended period. "We're going to have these days throughout the year, when investors get hit with the idea of eventual tightening," said Owen Fitzpatrick, head of U.S. equity group at Deutsche Bank. But the reaction is largely a knee-jerk one that's bound to dissipate, Fitzpatrick added"

Proving Hoenig correct, as he (shockingly reiterated) that interest rates might not stay near zero forever, the indexes dipped sharply on these words at about 10:30 eastern time this morning - only (of course) to climb right back up again.

So... I'm just wondering what traders expected him to to say? Maybe something like "I absolutely guarantee that interest rates will remain near zero from now until the end of times, for sure, no matter what." Ya, that would make sense. But since he didn't say that it's all OMG! Sell! Sell! Sell!

You just have to laugh...