Fear Mongering

Too many threats, "The what if you don't do this now" talk of the coming depression is all non-sense. To hand the government carte blanche without terms and conditions is absurd....they got us into this mess and this is NOT the way out....now they think they are experts...we know they are not.

Here is a better way:

1) Financial Accounting Standard 157, which was put into effect last November is a joke and is the primary reason we are in the situation we are in for mark to market accounting for markets that don't exist. This law needs to be amended to allow for a three year average pricing. This would free up the banks balance sheets over night and not cost ANYTHING....and be much more realistic.
2) Freeze short selling in all financial stocks for three years....you can't argue against this.
3) Re institute the uptick rule for the rest of the market effective immediately.
4) Increase margin requirements for all things leverage to show we mean business......start paying down debt now.
5) Freeze new home permits for six months.
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Everyone is too short term oriented. Change the tax code.

Capital gains for housing and equities held more than one year should be taxed at 10%, six months at 30% and less than one month at 50%.

With no money down, no new government agencies and a few easy changes to the tax code the equity markets and housing would stabilize over night. "Where are the adults?"

We will never nor should we in a short time compressed environment like this act this recklessly.

No research from wall street helping with stock ideas...have you noticed that?? Remember Spitzer separated the investment banks from the research houses back in 2000. Nice....the blind are leading the blind....and all they are doing now is trading.

Careful gasoline inventories have declined to record low levels. At 179 million barrels, the total motor gasoline inventories are the lowest since 1967.

With Quarter end approaching this week....several very smart people we follow have turned very bullish. Time to put your shopping list together. Asia ex Japan is cheap! Remember this is a debt/ credit "panic" not an equity problem. People not in work outs are far too bearish right now.

Danny boy seen here has a big head and is thinking more now....as he turns three.