It seems that now every time some from the US Government opens their mouth, the US futures tank. I was watching the futures when Mr. Kashkari, the new US Financial Markets Stability Czar, speak about what is needed, and the futures began a 10pts pull back. Amazing.
The propensity for the US Government to try everything and often is becoming more a joke then something that is calming the markets. All the markets hear is more regulation, more intervention, and that is not playing well with the players in the financial systems.
Well, what do you expect? You cried, "Save us, Save us!" and now that the Government is coming to your rescue, and says,
"OK, but the price for this rescue is going to be Government ownership and heavy intervention!"
The markets are going, "Wait a minute! We wanted rescue not take over!"
As I have said before, "Be careful what you scream for..."
You may get it in spades and its not always in the form that you would want to take it in. Medicine can be bitter, and boy, is this pill going to be bitter for the markets.
If history is any judge, the bear market is going to be lengthened, the financial crisis exacerbated, and the recession deeper. It is always the way of things when "control by group political think" (my definition of government) is imposed on a free acting mechanism like the once capitalistic free-markets in the US.
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