Tonight Jack Welch (yes, that Jack Welch) said that it's a 50/50 chance that we go down again. Watching Twitter is important folks, 'cause that's where he said it... right after a diatribe about the Red Sox. Glad to know that even someone who might know a little about the financial world doesn't think I'm totally out in left field. (All puns intended... all the time.)
What is most interesting to me is that both Meredith Whitney and Dick Bove, two of the top bank analysts out there, believe that there are somewhere around another 200+ banks to go under before this whole whatever-we're-calling-it is over. As of Friday night, we're over 80 failures this year. And the thing that I don't think Wall Street gets is that each of these 'too little to care if they fail' banks affects a lot of folks on Main Street. Want everyone else back in the market, Wall Street? Start to care if other peoples' pools are polluted.
The biggest announcement of the past week, though, and one that got virtually no press, was the announcement that the FDIC is looking to relax the rules for Private Equity getting involved in the banking sector. Gee, color me cynical, but why would they do that? Ummmm, maybe because they already know that based on the losses they already know about they need to raise fees to banks. And ummm... maybe because they know there are lot of other failures to come?
But everything is just fabulous out there. Go long in the market folks. Go ahead, I dare you. I'll even sell you the stock you want to buy. Color me generous.