Obama+Geithner= ZERO TRANSPARENCY

Good Evening Folks!

Boom! Boom! Boom!.....Yup, you guessed it, that's my head slamming against my desk again. I waited 30 minutes before I started writing this post because I was afraid I was going to start ranting like a lunatic once again.

I am trying to turn over a new leaf and be a little more diplomatic here on The Housing Time Bomb, however, I am finding this task to be more difficult with each day as I listen to the same bull**** continue to flow out of Washington.

The stock market is going to plummet if Obama doesn't start leveling with the American people. These "campaign style" promises simply are not acceptable to investors anymore. Look at what the market did after he spoke late today:

Quick Take:

Ummmm....I don't think the market could have sent a more clear message. He continues to stick with his recovery plan that consists of of throwing money at the banks without accountability. Investors are increasingly questioning whether or not the plan will work because they can't see the #'s. There is no transparency. Private equity isn't coming back to the market until they know what they are buying folks. Its really that simple. Without private equity, the plan doesn't work.

Wall St knows this and are clearly calling his bluff by selling stocks when he says this plan will work. Obama is overplaying his hand here bigtime folks. The investing public obviously has zero confidence in what they are being told by Washington and Wall St.

Today's dog and pony show around the rescue plan and "serious" stress tests was a joke. Here is a summary of the details(if you can call them that) that were announced today:

"Feb. 25 (Bloomberg) -- The government set a six-month deadline for the biggest 19 U.S. banks to raise any new capital deemed necessary after a mandatory review of their balance sheets.
The regulators will complete their so-called stress tests by the end of April, which will identify how much extra cushion each bank will need, the Treasury said today in Washington. Lenders will have six months to raise private capital or accept government funds and the conditions that come with it.

“While the vast majority of U.S. banking organizations have capital in excess of the amounts required to be considered well capitalized, the uncertain economic environment has eroded confidence in the amount and quality of capital held by some,” the Treasury said, announcing guidelines for new bank reviews."

Geithner also said nationalization is “the wrong strategy for the country and I don’t think it’s the necessary strategy.”

Losses will be projected under two economic scenarios. Under the “baseline” scenario, the U.S. economy will shrink 2 percent this year and expand 2.1 percent in 2010. The “alternative more adverse” set of projections has gross domestic product dropping by 3.3 percent this year, with a 0.5 percent expansion in 2010.

Today’s statement didn’t specify any potential limit on the amount of money involved. President Barack Obama late yesterday signaled that the administration will seek more money from Congress for the effort to break the back of the credit crisis."

My Take:

I highlighted the more ridiculous statements. Banks are well capitalized? HA! How many cash transfusions have we given to Bank of America and Sh*ttybank? The economy is going to grow 2% in 2010? DOUBLE HA! Good luck. Can I take the other side of that trade please?

Some of these banks better be well capitalized after getting a $25 billion donation from the taxpayer a few months ago.

These "stress tests" are another joke:

Something tells me the banks are more stressed out about what to order for lunch than they are about the dreaded Treasury "tests".

No one gets to see the results of these "tests"of course.

Question here: If these banks are so well capitalized then why can't we see the results of the stress tests? Investors would certianly buy the good financials if these results were made available to the public.

Bernanke refuses to do this because he claims it would force many banks to go under. I say so what! God forbid some of their banking buddies would have to go bankrupt. Guess what Ben, other banks would spring up to replace the old ones. Its happened many times in the past.

If the Treasury would just provide transparency I think the market would rocket. All investors are asking for is to know where they stand. You don't buy a car without driving it first and looking under the hood.

If the DC and Wall St continue to keep everyone in the dark, we are going to see the DOW at 3000 points a year from now.

Once again, the bankers have been given another gift at our cost.

Ken Lewis

The arrogance of this guy is beyond belief. Ken Lewis was bragging about the success of his "new stars" on Bloomberg today"

"Feb. 25 (Bloomberg) -- Bank of America Corp. Chief Executive Officer Kenneth Lewis said Merrill Lynch & Co. and Countrywide Financial Corp., the acquisitions that some analysts say helped push down the bank’s share price, have been “stars” so far this year.

Lewis, speaking today in a Bloomberg Television interview from his Charlotte, North Carolina, headquarters, said Merrill will be “a thing of beauty” over the long term. Merrill, the New York-based securities firm, lost $15.8 billion in the fourth quarter."

Quick Take:

Is this guy delusional? If they are such stars Ken than why is your stock at $5 a share? How many of BofA employee 401k's did you destroy via your plummeting stock price in the process of acquiring these "shooting stars"?

Unbelieveable, do these people have a conscience? How on earth do people like Ken Lewis have the nerve to come out and speak such nonsense? If I was a CEO and my stock price was down 70+% for the year I would not be on TV at all. I would feel embarrased, guilty, and ashamed after causing my shareholders so much pain. I guess you actually need to have have feelings in order to think like this..

Ken, perhaps an apology to shareholders might be in order versus bragging about your Countrywide "Refi boom".

Bottom Line:

Obama continues to come out and act like nothing is wrong and everything is under control. Meanwhile behind the scenes, Rome continues to burn. The arrogance of this guy is beyond belief. Obama its to show your hand. Wall St is watching you play this game of "financial poker" and they KNOW you have don't even have a pair.

Wall St is going to continue and punish you if you fail to show them your hand. You promise to deliver details before each press conference and then proceed to come onstage and shoot blanks. You are losing the confidence of the American people each time you do this. These news conferences are turning into giant "yawnfests".

Are you all bark and no bite? If you are, Wall St is going to eat you alive.

Today the market told you that they are demanding TRANSPARENCY and nothing less.

If you continue to keep them in the dark, you are going to push this country into a depression.