ECONOMIC UPDATE….Yesterday: Google shares plummet. Today: Fed Chief signals yet more interest rates soon to come. Coincidence? I think not. Apparently Google even controls the Fed now.

So what happened? AP put it this way on Tuesday: “Consumer confidence plunged, the wholesale inflation rate soared, the number of homes being foreclosed jumped, home prices fell sharply and a report predicts big increases in health care costs.” Bernanke puts it this way:

“The economic situation has become distinctly less favorable” since the summer, the Fed chief told the House Financial Services Committee.

….There are dangers that the economy will weaken even further. “The risks include the possibilities that the housing market or labor market may deteriorate more than is currently anticipated and that credit conditions may tighten substantially further,” Bernanke cautioned.

Fasten your seat belts.