Don't Mess With Taxes

OK. I posted earlier today that rising interest rates are bad for investors and what does the stock market do? It goes up in the wake of the Federal Open Market Committee's decision to bump rates up a quarter point.

Huh?

Here's another truism about the market: Wall Street hates surprises. So when Chairman Ben Bernanke and his boys did what was expected, boosting the the federal-funds rate to 5.25 percent, its highest level since March 2001, the Street cheered.

Investors were particularly happy because they see the FOMC language accompanying the hike as less hawkish toward inflation than some had feared.

Here's hoping that the market watchers and Fed tea leaf readers are right and that stocks, after this initial bit of exuberance, won't tumble like they did after the previous rate increase in May.