IS ANYBODY IN CONTROL?

Anywhere? Let's see. Having just concluded an agreement as to the standards by which it's banking system would be judged, the head of the European Central Bank, M. Trichet, comes out and says, "not good enough." OK, what is? Unfortunately, he didn't quite go that far implying, however, that what was needed was a more universal standard for judging soundness about which of course he is correct. As my Euro friend said, they are playing a game of chicken over there and not just with Ireland. The suspense is overwhelming as though no one expects a rescheduling of sovereign debt to occur.. I think the only thing in the way is universal agreement as to how the accounting is going to work for the banks. Hell, give 'em 10 years to write the stuff off as Chile did 30 years ago. Life goes on.

Over here, Lizzy (Borden) Warren is off mustering support for her agency for which she has not been appointed head, which reports to no one and receives money by simply asking for it. She has come up with a figure of $20 billion from the "big" (her word not mine) banks who service--or rather disservice mortgages--in compensation for the inability or unwillingness to restructure mortages in default or otherwise impaired. There was a congressional oversight hearing today to look into this but undoubtably nothing will result. One would think that an unauthorized woman attempting to take 20 bil out of what some folks believe are undercapitalized banks might attract some attention somewhere but with the exception of the WSJ apparently not. Oh well.

The Suit has come out out for the revival of the home mortgage market through the European idea of covered bonds. For those of you unaware of the product, banks write mortgages, pool them on their books and the sell bonds to which the mortgages are pledged. Works fine in Europe but the minute The Suit pooped up with this, up popped Poo Bair at the FDIC proclaiming that would reduce the assets available to her little fifedom when she starts winding up banks and limit payment to depositors. The woman remains delusional; she actually believes that the FDIC is importsant in the grand scheme of things. Shutting down banks in Gator Guts Plorida should be enough for her but apparently not. She actually still thinks she's a major player and no one will tell her otherwise.

Meanwhile, back in New York, the President of the N.Y. Fed had a stoke of genius last week. I was not going to bring this up but when you make a WSJ editorial, the Devil said, "DO IT!" Bill Dudley, (herein after referred to as "Billy the Dud" or "Dud") gave a speech in Queens--noted financial capital of the world--in which he presented proof positive of the fact that there is no inflation in the economy by pointing to the reduction in the price of the I Pad II as opposed to the I Pad I. There seemed to be a lack of agreement as to this point in the audience as someone asked him if had shopped for food or gasoline lately. You can't make this stuff up but then again, who lets Dud out by himself? Does anyone dress him?

And finally, in the midst of collapsing stock markets, upheaval in the Middle East, Nuke terror in Japan and the threat of another economic collapse, The Leader put out his picks in college basketball today. There's a man who has his priorities.

So who's in charge? Looks like Ghaddaffi to me. Remember him? He's the guy who, make no mistake, must leave. In which regional is he playing.