Defaulting banks - where will it stop?

[Jan Klimkowski]

I also concede the possibility that in my post above I have been duped by mere political rhetoric.

Good,now I don't have to come back with something cynical to post.

:beer:

I agree that the more likely interpretation is that Obama's comments are all theatre.

However, the markets are certainly taking a dump all around the world.

MSM's official explanation for this is typically expounded by the financial propagandists of Bloomberg. It decodes as Obama is a socialist who hates markets which is obviously rubbish:

Jan. 22 (Bloomberg) -- U.S. investors overwhelmingly see President Barack Obama as anti-business and question his ability to manage a financial crisis, according to a Bloomberg survey.

The global quarterly poll of investors and analysts who are Bloomberg subscribers finds that 77 percent of U.S. respondents believe Obama is too anti-business and four-out-of-five are only somewhat confident or not confident of his ability to handle a financial emergency.

The poll also finds a decline in Obama’s overall favorability rating one year after taking office. He is viewed favorably by 27 percent of U.S. investors. In an October poll, 32 percent in the U.S. held a positive impression.

“Investors no longer feel they can trust their instincts to take risks,” said poll respondent David Young, a managing director for a broker dealer in New York. Young cited Obama’s efforts to trim bonuses and earnings, make health care his top priority over jobs and plans to tax “the rich or advantaged.”

Carlos Vadillo, a fixed-income analyst at Wells Fargo Securities LLC in San Francisco, said Obama has been in a “constant war” with the banking system, using “fat-cat bankers and other misnomers to describe a business model which supports a large portion of America.”

http://news.yahoo.com/s/bloomberg/201001...uii1bcrdmy

Of course, it's highly likely that the severe market falls have enabled some banker piggies to rake in more filthy lucre.

Having had more time to reflect on Obama's words, I will be astonished if any meaningful and watertight regulation of investment banking and proprietary trading becomes law.