Government shouldn't run businesses

Bottom line is ...buy the US banks for the long term. They are very strong ...despite what you see in the media. Most of the ones that received bailout money are trying to give it back because it came with so many strings attached it meant they can't operate. This is what happens when the government gets in the business of running banks ...the results of which are these report cards. The government definition of the "stress tests" is not like anything the rational market would use ...so it's going to distort things and present a confusing message for the public. Frankly, I think it will make for a good buying opportunity.

The bigger question, the more concerning question, is the degree to which the Obama Administration wants to run a variety of businesses, including banks ...and wants to dictate how many other businesses should operate. When you take public funds and operate businesses in the name of the "public good" ...it's called socialism. And socialism, by definition is not a switch that is either on or off ...it is a creeping mindset that takes hold and is very difficult to undo. Ironically, some of the greatest leaders of our time have been the ones who "broke" the socialist trends ....Ronald Regan, Margaret Thatcher, even Brian Mulroney here following the Trudeau/Turner experiement.

As long as businesses are allowed to operate in a "free" and rational market, without the government interfering, then everything will be fine. But by the time that it is clear to everyone that Obama has marched off in the wrong direction, I fear it will take decades to undo. The good news is that the "markets" appear to have figured this out ...you can tell by the way they are reacting ...and they just might figure out a solution too.

Have faith in the free and rational markets!