Obama has lost 30% of the value of Banks in the US in 2 weeks!

The Coming Depression
Friday, February 20, 2009

At the time we had a new Fed President (Greenspan) who was untested and untrusted. We had other things going on in the markets in general, none of them particularly good.

We have no trust in the markets today. None.

I cannot value anything in this market. Absolutely nothing. And this sort of lie is part of the reason:

Feb. 19 (Bloomberg) — U.S., U.K., and European regulators are in talks to jointly regulate the $28 trillion credit-default swap market, the Federal Reserve said today.

Regulators including the Fed, U.K.’s Financial Services Authority, German Federal Financial Services Authority and European Central Bank met today to discuss a possible information sharing agreement, the Fed said in a statement on its Web site. The goal would be to apply consistent standards to the market and provide support across jurisdictions, the Fed said. ”

This was supposed to be done last year, remember? By the end of the year we were supposed to have an implementation plan to get this done with the infrastructure in build-out going on right now.

Instead we have The Fed lying again about the issue.

• A d v e r t i s e m e n t

Why?

Because Bernanke knows – these contracts cannot be covered as the people who wrote them have ZERO, or close to it, in capital!

This is what the market DID as a direct and proximate consequence of Geithner’s and President Obama’s actions (or rather, their inability to come to the table with anything approaching an actual plan)
That’s a decline of 87 S&P “handles”, or about ten percent in less than two weeks.

(ARTICLE CONTINUES BELOW)

But that’s not all. Have a look at the BKX, the banking sector:

That’s a decline of thirty percent in the banking index in the same two week period.

THIRTY PERCENT.

Folks, this is the very definition of “no confidence.” A thirty percent loss in two weeks, in the very sector that we were promised would be “saved” by our new President, and that two weeks has passed without one iota of a plan being actually released.

Your inept and outrageously incompetent handling of this mess has led to the destruction of one third of the equity value of banks in the United States in less than two weeks. Your ineptitude is in fact greater than George Bush and Hank Paulson, who managed to take a third off the BKX but they took more time to do it than you did.

In short your and Timmy’s policies thus far are an abject failure and we are now sitting on the abyss in the market with a literal potential for a waterfall selloff that initiates tomorrow and translates into Monday exactly as happened, and as severe, as in 1987.
And further down, he put this in to give you an idea of the immediacy of the peril:

Quote:
Whatever your plan is Mr. President and Mr. Geithner, and I presume it is NOT what I outlined above, I recommend that you get it out in the public right now. Overnight, with enough time for it to sink in – and certainly NOT 30 minutes before the market opens tomorrow morning for Options Expiration as Bernanke thought he’d do in August of 2007. We’ve had enough liquidity destroyed due to government game-playing – we can’t afford to have any more traders carried out on their shields that provide necessary liquidity in the markets.
LINK

 

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