Of course when you throw unlimited amounts of cash at a problem anything that was once bad becomes better again, right... hahahahah, fools game is all it is, the economy is years away from being back to where it was.
I never said it would be back to where it was. I simply think the economic environment will be better in late 2009 which is why we are seeing markets climb. Markets crashed in fall 2008 anticipating a worse economy in spring 2009, which we are seeing. Now they are climbing based on anticipation of a recovery in late 2009. And by recovery I don't mean back to DOW 13,000 and full employment, I mean better than things are right now. To me it makes perfect sense why markets are climbing. That being said, they won't climb forever and will eventually fully price in the improved economic environment anticipated for late 2009. I don't know when the "fully priced in" moment will come, so I am cautious. Cautiously long.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aZFk.I0rEPhI&refer=home Regulators Say Banks Needing Capital Must Submit Plan by June 8 By Craig Torres May 6 (Bloomberg) -- Banks that need to raise capital under the governmentÂfs stress tests will have until June 8 to develop a plan and until Nov. 9 to implement it, U.S. bank regulators said today. The capital buffer for each bank holding company Âgis sized to achieve a Tier 1 riskÂ]based ratio of at least 6% and a Tier 1 common riskÂ]based ratio of at least 4% at the end of 2010, under a more adverse macroeconomic scenario than is currently anticipated,Âh the regulators said in a joint release. Capital raising plans could include sales of business lines, issuance of Âgnew private capital instruments,Âh spin- offs, and continuing restrictions on dividends and stock repurchases, the release said. Financial institutions must also provide an outline of how they plan to repay government stakes, and Âgreduce reliance on guaranteed debt issued underÂh a Federal Deposit Insurance Corp. program. The release was issued by Secretary Treasury Timothy Geithner, Federal Reserve Chairman Ben S. Bernanke, FDIC Chairman Sheila Bair, and Comptroller of the currency John Dugan. The banks don't need t do sh*t! Bernanke already said he won't let any of the 19 fail. So the banks can play chicken with him and not do a damn thing.
Now THERE'S a motley crew ! Sheila Bair so reminds me of Nancy Pelosi....always dolled-up, looking fine, because it's meant to overcome the lack of substance in their statements.