We have had some significant problems with our friends at Google which--hopefully- are now solved. Fortunately, little was happening of interest to anyone but first if you have been reading the weather reports there is sufficient info in those to cast serious doubt on the issue of whether Al Gore is totally mad. It is cold. Really cold in the Fly-Over Zone. Two months early cold. Coldest weekend in the past 22 years. Gas guzzling cold. I'm going to start raising cows just to get more methane in the atmosphere. It's that cold. It's relentless.
What's also been relentless has been the progression of the stock markets to new highs seemingly every day as witnessed by the NASDAQ reaching the 4000 level for the first since the crash of the dot-com's way back when. I keep listening to the talking heads proclaim that this is real and uninfluenced by the soft money policy of the Fed and keep asking myself, "who are they trying to kid?" Then again, perhaps it is a strategy, though deceitful, is quite worthwhile. Over Here, as well as Over There, we seem to be in a mode that if no one complains, nothing is wrong and if wishes made enough times become an artificial reality, why interfere? As I said last week I was clearly wrong as to the future of the Euro…at least up to now…but it is also true that many more than before are beginning to believe that this damnable currency ha a future within the Union and in its present form at that. I remain an agnostic as to this as well as to the future of our financial system which remains under assault by this administration and politicians of seemingly all stripes.
The amazing thing is that the bankers have absolutely no sense of timing or effect. Now I've lived long enough to see some stupid things in my time out of this industry but the genius displayed today is mind-boggling. The suggestion that banks are about to begin charging negative interest in order to protect their profitability in the event of Fed actions is akin to handing a loaded gun to a mass murderer because it ruins the lines of one's suit. Crazy Lizzy Warren must truly believe there is a God by this time. Not only does the mere thought of this action allow every two-bit demi-God in D.C. to have a field day in arousing even greater hatred for the industry on this one issue but it allow an entirely new fishing expedition on bank funding in general in the worst possible environment and light, guaranteeing greater meddling with the most basic activity of the industry. Is there no one in the industry prepared to stand up on their hind legs and proclaim that this will never happen? Isn't there anyone out there smart enough to realize that what ever might be earned pales in comparison to the public relation catastrophe that will result? Let's see what will happen tomorrow…and it better be tomorrow before this story gets really hyped…or before we disappear under the first Lake Affect snowfall of the season. Eighteen inches coming up!
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