Friday, January 22, 2010

Me Three

Cramer: But where's Geithner? I didn't know Volcker became our Treasury Secretary overnight. Geithner works very closely with Frank, I wish he were consulted more on this, maybe he was, but it sure doesn't sound like anything Geithner[...]

F-- Geithner. F-- Frank. No offence to either of you, not personally at least, but unless Obama is just a complete wuss this Volcker Agenda is moving forward. You can step down now, Tim.

When it comes down to it, I don't believe in Government period, let alone more regulatory statutes. The only real-world political agenda I could completely sign on to would be to focus exclusively on repealing statutes rather than adding more laws, no matter how well intended.

But from a pragmatic political (and economic too, I think) perspective the Volcker plan makes sense here and now. If we must suffer populism, directing it against bankers is better than many alternatives.

If investment banking and proprietary trading are really all that, then whatever spin-offs need to happen as a result of this plan should have no trouble attracting sufficient capital backing.

this post was meant to be a here-here to Gary Biiwii's post seconding Derringer's demand of the President: "follow through NOW!"

Biiwii is always required reading, Gary has one of the most consistently profitable eyes for the markets that I have ever encountered, so it is encouraging to me that regional banks have attracted his attention in the blog post linked to above (here's the link again).

(KRE has been a long position in my newsletter's model market neutral Seven Symbol Portfolio since early in December. It's come a long ways, but for what it's worth, my price targets haven't been hit yet.)

(edit at 11:20pm. . .statues, statutes, whatever..)