Ilargi: The US government and the Federal Reserve indicate that they will not let a big bank fail. They also hint that the uptick rule will likely be reinstated, which is great for banks that someone might want to short (many someones want to). Moreover, the drive to change fair value rules (were they ever executed?) gets so strong that blogger Karl Denninger, who's spent months clamoring for fair value and mark-to-market, today does a 180 and argues for a suspension of the all-too-rational principle. Thinking of a career in politics? Any idea of the damage a suspension would do? I think you do, Karl.
To top off today's party cake, Ben Bernanke once more reiterates (I know that’s double) that the recession "might end this year". Now, I watched Jon Stewart dig into Jim Cramer last night. Reading Bernanke's words this morning, my first thought was that I hope The Daily Show will do a similar "timeframe truth test" of Bernanke. Shrinking Ben has made so many ridiculous claims about the economy's health and its upcoming recovery since he took over, it should be a feast for the eyes and ears.
Read on...
It seems that the financial crisis has many in a pensive mood. Mish today is talking about material things, LK is pondering loss and how big 50 trillion dollars is, and Peacenik was contemplating the value of stuff and things and ideas and how things are valued. What would be the value of a chunk of gold on a desert island. What is the value of 50,000 shares of the Royal Bank in an information vacuum. What is the value of a question mark or a can of tuna.
But the markets were up big time yesterday based in small part on the belief that the worst is behind us. Jim Cramer declared a bottom. The CNBC pundits, excoriated by John Stewart just days ago, were giddy. Is this the end of Doom? Is this how a crisis ends? Is this the beginning of a new society, a new economy? Ilargi doesn't think so. Peacenik doesn't think so. Peacenik will remain alert and alarmed.
