Fed Overhaul

"Hey, Timmy, Benji here."
"BB, what can I do for ya!"
"Timmy, I officially need your approval to write blank checks for the big boys in emergency situations. So what do ya say to half a tril' in ABC money?"
"No problem, Benny boy, I've got a big pile of rubber stamped permission slips right here."

So the charade continues. With promises about limits on leverage and new oversight on too big too fail companies, Obama intends to appease us, unemployed and 40% less wealthy. Notice the CEOS and managers responsible for these huge debacles will not be replaced and that there was no mention of caps on pay. Ultimately, Obama's plan would leave even more power in the hands of the Fed, enabling the oligarchs to consolidate power even further.

The day after my last post, we did see 2 consecutive markets with greater than 1% moves, fortunately to the downside. As new data rolls in, the persistent optimism over the slightest economic improvements seems to have waned as the reality of slightly better than horrible still isn't that good.

S&P downgraded 23 banks yesterday on a reality check and GS' chief economist thinks we're due for a pullback. Really? Wonder if GS has already placed their bets?

Martin Weiss pointed out in his article this week that the economy is in horrific shape, even with govt. stimulus which will only delay the death throes:

"The first quarter brought the greatest credit collapse of all time. Excluding public sector borrowing (by the Treasury, government agencies, states, and municipalities), private sector credit was reduced at a mindboggling pace of $1,851.2 billion per year!"

So where exactly will the spending and new business come from? Combine this with steep YOY declines in container data shipping into our largest port at Long Beach, and watch the green shoots wither come Q3.

http://www.moneyandmarkets.com/new-hard-evidence-of-continuing-debt-collapse-34202