And More Cold Water From Goldman: "Bernanke Speech Suggests Fed Squarely In Zone Of Inaction"

Following the earlier note on the “irrational exuberance of QE3″ at current conditions, Goldman does a one-two to the face of the long-only slow money crowd which are about to realize that what goes up the escalator, will go down the elevator, repeating that the next round of monetary easing “would require a notable further deterioration in the outlook to be considered seriously.” As a reminder the only “outlook” the Fed keeps an eye out on is the 50 DMA of the Russell 2000.

Just out from Jan Hatzius:

Fed Chairman Bernanke’s speech at the International Monetary Conference acknowledges slower growth but views this as at least partly due to temporary factors.