Holy Moly Batman! Keep the Treasury Secretary away from microphones

Posted on Feb 10, 2009 by in Letters

The good news:  the exasperating and dilatory Senate passes a stimulus package.  The bad news:  Treasury Seretary Geithner informs market that some banks are going to the guillotine.  That will make investors nervous.  Especially if they are sitting on the front row knitting and checking their portfolios.  Offhand we would say that the market over reacted, but what do we know?  We'll find out tomorrow what we know.  There are many positives in Geithner's plan and enormous drawbacks in its non-theatrical roll out.  Frankly if we were running a few billion right now we'd be calling up Tim and trying to get in on the deal.  Government takes the risk (or some of it) and we get the profits.  What's wrong with that deal?  We predict that a lot of money is going to be made by smart guys scarfing up these toxic assets.  And if Bush's treasury hadn't been such mudheads and ideologues we (you know, we the people) would have made a handsome profit on the bank bailout.  Something is going on here (in the market).  We think a rally is trying to get started.  Just as long as Tim keeps his mouth shut for awhile.

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