TIME TO CALL LARRY

I have to ring up my really smart friend Larry who, if he is not too busy watching the World Cup over in Blighty may be willing to get me out of my funk.

Things are really not looking too good.  Yesterday the equities took a bit of a dive; today they got crushed.

The Fed really didn't help by saying they didn't like the look of things either which of course was one of the main reasons for the rout; the talking heads noted with some surprise (why?) that home sales were in the crapper; some views were expressed that one shouldn't go anywhere near a community or mid-sized bank because of their commercial loan portfolios (told you that months ago); everybody's figured out that the Yuan revaluation is a mug's game (told you that too); the Business Roundtable realized they had been played for suckers by the Leader and his mob (geniuses that bunch) and financial reform is in fairy coo-coo land in the Congress.

The two things that nobody seems to have mentioned that went on last week when the power went out--except in passing--are the two scariest things of all.  A report was issued that indicated that U.S. Corporations have the highest cash or near-cash levels in history (or damn near it) while across the pond, Euro Banks have the highest level of deposits with the European Central Bank that has ever been seen.  All at the same time time...which means that the Euro Banks don't want to front each other...i.e. interbank lending ist tot and the Corporates have gone to the mattresses as my Cousin Guido used to put it.  The entire western world seems to be scared to death or at least more than a little bit concerned.  The Big D...deflation...is being mouthed quietly in the shadows and thoughts of a double-dip have been given voice, while thoughts of the great turn-around seem to have put on hold.   But all is not lost:  as of yesterday we can find solace in the knowledge that the United States has achieved a first place position in the world of commerce.  What with Japan reducing it's corporate tax rate to 25%, the U.S. now has the highest corporate tax rate of any industrialized nation in the world.  Woopey damn-do.  Let's hear it for of leadership,  expansion and job creation.  Except not here.  Brazil maybe, India for sure but not here.

So it's time to call Larry to find out whether I'm just a grave digger or they may be something real about my concerns.  I mean wouldn't it be great if he had some encouraging words?  It sure as hell would be better that worrying about what the morons in Congress are going to do with the financial services industry which every day in every way they present increasing evidence of what they don't understand (much).  I mean wouldn't it be great........Larry?