My 2 cents:

First, did anyone read the article this morning on Yahoo News that stated that banks are actively shorting each other’s stock in anticipation of the stress test results? Now, I can’t find that article, but it was not only there this morning at around 11, I also brought it to the attention of a colleague.

All I can say is, we are being bamboozled (like that verb? no charge) by our own government, so that we will not Panic. (I’m not even close to panicking; are you?)

I also want to go on the record expressing my intense amazement at the profoundly adamant determination of Bernanke/Geithner, and whoever else makes up their team. Wow, boys, you really gritted your teeth and stuck to your guns this month, didn’t you. By the way, how do you feel about selling out our founding fathers’ principles?

We the People would never have stood silent for some of the actions that have been taken by the U.S. Treasury and Federal Reserve during this Time of Severe Recession. But we have been afraid, and we have allowed these actions, thinking they were in our best interests. As long as we can go to the ATM and withdraw $200 when needed, we’ve been OK with everything.

We hesitated to make Judgments. Because maybe we could be wrong; maybe the Feds really ARE justified in their actions. Maybe we could just cede them temporary control over the ENTIRE WORLD ECONOMY because, after all, they’re looking out for the little guys, right? Well, it’s temporary, right? We’ll return to a Free Market Economy after this is all over, right?

Wrong.

What will happen in our markets, in the short term?

We go up AND down, for a while. We battle between bears and bulls, for a while. How much can the U.S. Treasury afford to spend on fancy market manipulatives? Answer: a Lot. So we go to war against ourselves, instead of investing in ideas that might actually pull us (the U.S.) out of doldrums. And that is why I am bearish. Because in the end, I see us sinking… not necessarily due to the existing crisis in the banks, but because banks (and our own government) are unwilling to write off losses and recover with investment in New ideas. Waste of capital, in my opinion.

Related Posts:

• The government needs to know where to focus.
• When the recession ends, it will not feel like it.
• Bloomberg news about G8:
• Here is the Nobel prize winning Economist prediction for the economy:
• I have been following the Treasury, Fed and Geithner very closely these last few months, Also the bank’s stress tests.

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