Funereal

Congress just got tasered. Morale is so low or "suited to or suggestive of a grave or burial."

Constituents protested the TARP vote to their esteemed Congressman and got what they asked for ....nothing.....Why, because no one knows what is going on here.....even Senator Reid admitted as much last week.

What now: The rules have to change again. As we have said FASB 157 is what is killing the financial system. This law put into place 10 months ago needs to allow a three year moving average for the debt crippling the banks today trying to mark to market paper with no market. It would be easier than the TARP plan. Tarp will be passed if not forced down congress...they will have no choice when they come back to the table.

It matters if an investment is owned by a leveraged player even if that investment itself does not have a huge degree of leverage. Unfortunately this is true now of what is left of the stock market today...the only assets that can be sold for those who are forced to sell are stocks. Use this market to upgrade if you can to the best run companies in America.

The unfortunate story for 2009: The nation's Pension funds and Endowments have been taken to the cleaners by the hedge funds. They don't yet know how bad it will be when the books close for 2008. These important funds will be dramatically under funded for the next few years. Trustees will shun exposure to this wrongdoing, like the plague. Redemption's will be the norm for the balance of Q4/08..... In addition to mounting tax loss selling.

Continue to preserve capital. This is a dangerous market with no leadership. As we used to say, "the tape is terrible."

Danny Boy seen here in the weeds.