1. Bernanke did not confirm a "put". Indeed, he kinda hinted that he might not "put" at the market, and if he does do it, it will happen only because the economy is at risk, not some group of speculators.
2. Bush said in plain English that he is decidedly opposed to bailing out speculators! And let's be clear; this is not just homeowners who speculated, it is also banks, builders, securitizers and virtually everyone else who touched this toxic crap.

And yet we have asshat Kudblow on TV again preaching:

"I believe that free market capitalism is the best path to prosperity."

(except when it means that those who speculated and drove the price of houses out of the realm of affordability, or who speculated via the LBO "put" would have to be punished with asset price collapses back down to historical norms, which means both a 50% retracement in house prices and a 50% retracement in the stock market!)

In that case, we should bail everyone out (If we could only figure out how - ******n it, we can't seem to make that happen! Why the hell not? Isn't everything that happens solveable by the government?)

Oh, and Alphonso Jackson, HUD Secretary, says "I'm just happy we caught it in time" on the housing mess. Now there is a total, absolute, unadulterated dickhead without a clue as to reality.

Don't worry - by Grinchmas, and you can mark my words on this, he'll be eating that statement.

The commercial paper market is of course the 900lb Gorilla in the room. And while Cokelow rants about interest-rate cuts in this regard, he's on drugs in thinking that will fix it. Why? Because that paper isn't illiquid - its stuffed full of the same toxic bull**** that nobody wants to buy any more!

And this needs to shrink. Everyone says "oh that $300-400 billion will kill the market." Well, it might. But if it does, I'd argue it ******n well should!

Why? Because I'm sick and tired of people trying to shovel **** sandwiches into my mouth! And before you say "but its not you" the hell its not! This crap is going into money markets, its going into institutional pension funds, its going ****ing everywhere and its being demanded that we eat 'em!

That's bull****.

Oh by the way.... anyone see this little report from the Federal Reserve?

Specifically, look at the following table excerpt....

  Date        total(2)    non-       required

                        borrowed(3)