STEVIE

I grew up with a kid called Stevie. Stevie was a big kid, a lot
bigger than the rest of us. Stevie was also a mean kid--not for any
particular reason, just because he was bigger and could beat up
anybody on the block. You did what Stevie told you to do and that was
the end of it. Mostly, you just tried to stay away from him. Stevie
was what we called a punk.

As we got older a funny thing happened: Stevie didn't grow as fast as
many of us. One day, one of us...and I really didn't know who it
was...beat the living hell out of Stevie. We never saw Stevie much
after that. About a year later, Stevie's family moved to the
suburbs. Not long after, I forgot about Stevie.

Now let me make it clear that I don't the The Leader is a punk, but
the President of the United States is the biggest, strongest guy
around and he is full grown. It was therefore quite surprising to me
how many people within the media were remarking on how "strong" The
Leader was in dealing with GM and Chrysler. Huh? The only surprise
in my mind was the manner in which The Leader acted yesterday.
Stevie. There was no need for a public execution of Rick Wagoner; a
simple slipping away was all that was needed. There was no need for a
probably unfulfillable ultimatum; a simple statement that the game was
nearly over would have sufficed. We all understand the Power of the
Presidency; less bluster and quiet action is the greatest reinforcer
of this knowledge. Then why?

I hope I am incorrect, but I am afraid that this is a template for the
manner in which this administration plans to deal with the financial
sector because, you see, Our Hero has a stinko and probably unworkable
plan for the so-called "toxic assets" that would probably be an
absolute non-starter without a nudge from The Leader in the form of,
"Sign here, bub, or get out and go home." These boys don't like to
lose and they sure as hell don't like to admit they are wrong. The
Leader's auto council consists of 20 people, none of whom have the
slightest idea as to how to run an auto company but feel uninhibited
in putting forward a strategy that affects hundreds of thousands of
people. Similarly, if there is a task force, formally or informally
arraigned within the Beltway it too, contains not a person who knows
the first thing about the complexity of running a bank much less
having ever run one, including Dear Reader, Our Hero and those above,
below and around him. Nor will they ask for help. It is, I am
afraid, more about their confirmation of their own brilliance than
solving the problem at hand. They have become so concerned with
circling in the glow of one another that they have forgotten their
mission.

Oddly, the one person that could help in this upcoming debacle is
Barney Frank. Think what you will of him, Rep. Frank is a long way
from being a dope and he actually understands many of the problems we
face. I have never ever met a person within the regulatory community
who has been unimpressed with Rep Frank's acumen. Similarly, I have
never met any member of that community who believes that Rep. Frank
would (or has ever) put the public good before politics or the good
that accrues to Rep. Frank. But as the ads for the New York State
Lottery used to say, "Hey, you never know." Now I freely admit when
one is hoping for the assistance of Barney Frank to set his party on
other than a course than might lead to disaster, one is in deep
trouble. But there it is. If we are to face another session of
legislative insanity and pandering to an public ignorant of anything
except well-constructed (and in some cases well-deserved) outrage,
well, why continue. My views are clear.

Thursday if the date for the FASB decision on any changes as to the
application of 157 which could be very useful in our understanding as
to what the future holds. I will attempt to have a full discussion of
the "plan" before us and what effect the FASB ruling might have upon
the same. I know, I'v been promising this for days and keep getting
side tracked but I promise, I WILL DO IT! Also, keep an eye on the
pronouncements coming out of London on global regulatory matters.
Hopefully, nothing of importance will emerge. Nothing ever does.

A thanks to Mr. Ewan Watt for his kind remarks on his most thoughtful
blog site the other day. I have never met Mr. Watt but from the name
I assume he is one of The People. A lady lawyer once said to me,
"Best have the Scots on yer side Laddie. We're all a bit mad ye
know." As a Hatter was she but mor' an a wee smart.