The FCC today put forth a proposal to address looming jurisdictional questions stemming from last month’s court decision.

Anytime an important policymaking decision comes down, you always have to expect that there will be overreaction. Case in point? Sanford C. Bernstein financial analyst Craig Moffett’s response to the FCC’s decision to pursue a “third way” course for regulating broadband access services.

Now, anyone who follows Moffett knows the strength of his affection for the cable industry – about as strong as his hatred of investment.

And now he deems the actions proposed by the FCC the “nuclear option,” claiming the move could “essentially make the Internet business a public utility.”

However, in reading the actual proposal, it’s difficult to understand how he comes to such an interpretation. Nonetheless, Moffett’s comments caught the eye of fellow analysts, and he quickly spread a false rumor that succeeded in a slight drop in cable industry stocks. Not that we haven’t seen things like this before on Wall Street.

The amusing part is that AT&T and Verizon, two companies who are just as impacted by the FCC’s decision have barely seen their stocks dip. In fact, they’ve dropped well less than the overall market has for today even after continued concerns from Europe and a general lack of confidence amongst investors. Furthermore, one cable operator reported profits below analyst estimates today. Cable stocks are also trading at 52-week highs after analysts, led by Moffett of course, cheered Comcast and Time Warner Cable’s first quarter results.

Moffett’s perpetual fear-mongering is just that, the FCC hasn’t even acted on anything yet! At least one analyst withheld judgment until “the agency finally implements this.”

Additionally, the proposal appears to retain the status quo. During Cablevision’s quarterly call their COO called the decision “disappointing,” but stated the company does have “some sympathy” for the FCC. Time Warner Cable was apparently “encouraged that the FCC’s proposal doesn’t go beyond its previously articulated principles."

It seems while Moffett is huddled in his bomb shelter yelling at his analyst friends to take cover, the rest of us are continuing to go about our business selling and subscribing to broadband.