Bailing on the bailout

(10 Feb) Old Bill Shakespeare had this day nailed a long time ago when he came up with, "much ado about nothing." The administration even delayed the announcement of this exercise in prevarication by a day. What for, I don't know. They didn't say anything.

These guys don't have a clue

That's one big problem for the administration's bailout bill. They apparently think that by talking about it, the problem will be solved. This isn't Congress - this is reality. They said nothing of substance, leaving us with the basic implied thought of "trust me." Well, in New York City, where most of the hard core market players live, that phrase has sarcastically come to be the equivalent of another not for the family phrase of two words. And that is what the traders are saying back to the Feds in terms of what they think of this crap sandwich the administration came up with.

The markets don't like uncertainty

There's lots of that with this non-bill. It's all about generalities and way low on specifics. They set out this general plan - these "guidelines" - with the details to be filled in by the Wall Streeters. They will. But first, tell them - exactly - how you're going to value the assets, what happens with this mark to the market rule, just what kind of back door is there to get rid of these bad assets. Just a few little things like that would have been helpful.

You can't play the game without rules. Even Congress has rules - for most of them, anyway...

Lack of leadership keeps money on the sidelines

In Marine Corps officer training, we were taught that you can't push a rope. That means that to get action, you have to be in front and pull the others along. That's not happening. I haven't seen such high level whining since the dark days of the peanut farmer. These guys make Henny Penny seem positive by comparison. You must say and do something specific. Set the guidelines. And then, be prepared to take action to fix, adapt or improve upon what you laid out, based on feedback from people who actually know something about this.

Must not teach that in community organizing class.

Buy the rumor - sell the news

You could have made a lot of money since January 20th doing just that in the markets. They set up hopes and then provide nothing new, improved or different and then get all crinkly-faced wondering why we just don't seem to understand. It's our fault. We have to embrace change for things to be all better.

Okay. I'm for change. How about changing from "someday my prince will come" to "just the facts, Jack?" The markets aren't about sensitive new-age guys with "programs." They're about facts, data and a faith in the future - this latter trait seeming to be one that no one in this administration seems to have. Oh yeah, unless you support spending for more "programs", of course.

Either play big or go home. Either come out with specific plans for specific purposes or sit down, shut up and let the markets take care of themselves...something that has actually happened in days gone by.