Another look at the discord within government. In the video below, Andy Vollmer, General Counsel for the SEC, spends six and a half minutes evading questions by Representative Gary Ackerman on the Madoff matter. Mr. Ackerman concludes "we thought the enemy was Mr. Madoff, I think it’s you…"
Wall Street Demonized as Turf Battles Rage in the Beltway
Courtesy of StockJockey at 1440 Wall Street
An administration official who asked not to be named said he knows about Volcker’s frustration, which he said has waned since Obama’s inauguration. The process of setting up the panel has been slowed by bureaucratic hurdles, advisers said.
People outside Washington who have talked with Volcker said the former Fed chairman still expresses dissatisfaction. Summers’s resistance has made Volcker more determined to get the panel up and running, they said. Bloomberg
Mad dogs and Englishmen might be on the bid in the AM, but has Saut spent too much time in the winter sun?
I would hate to see him lead a kamikaze mission just before the annual grappa party.
It appears our latest problem in the equity markets is multiple contraction; America is getting change, alright, as equity risk premiums take another turn for the worse. Oversold stochastics are a quaint concept, just like valuation used to be. Lets hope we hold the line at support, but we seem to be in a never ending nightmare.
As my favorite strategist said yesterday:
Obama, through a pragmatic politician, has profound populist leanings and is probably very sensitive to the public anger and its political implications. Obama and his close advisors are probably very focused on how to navigate what are in essence quite treacherous ideological and political seas.
I suspect the administration may believe it has to demonize Wall Street in a very public way in order to undermine the opposition to government intervention by ideologically committed advocates of free financial market solutions. Such “demonization” might be needed to get the public, media and Congressional backing to push through interventionist measures that ultimately will have to be taken. If this is so, Wall Street bashing will be kept at the forefront of our politics through Congressional investigations, investigations by the likes of Attorney General Cuomo, and more commentary from the administration along the lines you’ve heard in recent days.
Buckle up for a bumpy end to the week.
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Holy coal rake! The SEC gets bent over.
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Volcker Chafes at Obama Panel Delay, Strains With Summers Rise
Bloomberg
