Fed Chairman Ben Bernanke is acutely aware of the significant impact his words have on the movement of the US stock and bond markets.  As the nation's head banker for the last 4 ½ years (with a severe global recession occurring during the most recent 2 ½ years), Bernanke has learned to carefully select the tone of every sound bite he utters.  In a speech delivered last Friday (8/27/10) in Jackson Hole (WY), Bernanke deftly navigated through a dialogue that was one part "reassurance" and another part "confidence."  The "reassurance" was Bernanke's claim that the Fed still has numerous options at its disposal that can stimulate the US economy if and when necessary.  The "confidence" was his assertion that the Fed will "do all it can to ensure a continuation of the (nation's) economic recovery" (source: Federal Reserve).   
 
At the end of 2009, 10% of home mortgages nationwide had at least 1-payment past due and another 5% of mortgages were in the foreclosure process.  At the end of June 2010, 9% of mortgages were late and another 5% of mortgages were in foreclosure, indicating that the housing market may not have bounced back yet but may have bottomed out during this year (source: Mortgage Bankers Association).     
 
Before the financial markets close on Friday (9/03/10) for the 3-day Labor Day weekend, the monthly jobs report for August 2010 will be released.  Last month's (i.e., July 2010) +71,000 jobs gains in the private sector were more than offset by 202,000 job losses by government workers (source: Department of Labor).