Nervousness about the reappointment of Bernanke a bit over done on Friday. Democrats in the Senate got the red growing when several announced they would not vote for reconfirmation of Mr. B. This may have been a direct response to the election results in Massachusetts as Democrats came to realize they can play hardball too if all their health care efforts are to be undone. Being obstructionist, they reason, works both ways. Of coarse the Fed and especially Treasury have few friends as the tired public views the treatment of the same 'good old boys' and their financial workouts as only for those who are guilty of the greatest errors in fiduciary responsibility. Crying save us and then saying never mind after their rescue has the general public annoyed.
The 'worst is over' cheers suddenly got quiet as selling appeared late last week and may have made a dent into those who truly believe the market will gain in 2010 and their current long position. Those folks do not want to sell but do not want to leave all on the table again.
All this may be tied to a general realization that the nation's job creation engine will only idle in the coming years as everyone discovers the manufacturing of ring tones is not the lift the economy needs. No, a world of shrinking leverage opportunities will make it hard to employ those who came to rely on the broad uplifting effects of a climbing real estate market. Maybe congress should consider tax credits for families who take in lawyers, real estate agents, and mortgage dealers.
The paradox of is that there is plenty of money supply, but not enough supply of money to go around to the ever growing ranks of jobless Americans.
