Hey everybody, $700 billion doesn’t seem like all that much cabbage any more, does it?
Dow prints a 7-handle right out of the gate on Friday — NICE! Then we get a pretty V-bottom, somes cheers on the floor, another grind-down late into the session, and then rumors of some more “coordination” among the world’s ruling buffoons, and we finish the day with only one more black eye, 128 down.
Wall Street greed, Wall Street greed, Wall Street greed. Whatever. You give a kid a bottle of pancake syrup, a bag of feathers, and a fan, and leave him alone for a few hours, you deserve what you get.
Shakespeare himself could not have concocted the comedy of errors we’ve enjoyed in this farce, including:
– Letting the Democrats inflate Freddie and Fannie like Mardi Gras floats
– Supporting Sarbanes-Oxley, which neuters corporate American communications to investors and forces them to sit there mum and effete while talking heads traumatize the markets
– Greenspan. World’s literally dumbest person. Go back and look at it. What he did, what he said.
– Letting the completely broken and stupid ratings agencies act on a daily basis as financial terrorists, aiding and abetting the short sellers in every effort by moronically validating what the shorts are trying to do… drive the stock price down to a level where the company in question can’t raise the capital it needs to survive in the face of pure panic
– Fiddling while Rome burns, Congress craps around for two weeks, kowtowing to hysterical and naive voters calling in to make sure “you don’t give my money to those #!)_^(#_)s on Wall Street”. By the time they finally get around to passing anything, the damage is done. And here we are a week after TARP passes, and what have we seen? Nothing. They’re still picking out agency letterhead.
– Chasing the problem the whole way down the rabbit hole, the Fed continues to try to conserve bullets in its gun, foregoing a “shock and awe” approach for the minimum it can get away with at each juncture. The latest: 50 basis point cut. BFD. If they weren’t going to do 100, they shouldn’t have bothered at all. Predictably, the market laughed at the Fed and sold off anyhow.
– And hey how about that fun-loving goofball Sheila Bair at the FDIC, cutting a deal with Citi and then playing footsie with Wells Fargo during the intermission? There’s a big old confidence builder! News Flash: The government’s word means nothing. That’ll come in handy next time they need a partner in a crisis.
– Putting exquisite punctuation on the debacle, our fearless leaders decide to lift the short ban, since of course TARP has been passed and everything’s ok now…. but oops, TARP is sitting there like a fat drunk passed out on the floor, so what happens? Total freaking jailbreak on Morgan Stanley, Goldman Sachs, and the rest of the market!
We had our chance. Nature gave us a test drive, and we ran off the road. It’s time for us to step aside and let the cockroaches take a crack at it.