Clearly there is not confidence

… in our Feckless leaders ability to handle the Solvency Crisis.

Hell, this crisis begat another crisis: the Leadership Crisis.

Hanky Panky, Clueless Bushtard, and Bendover Bukkake are clearly in over their heads.

Trying everything and anything to try and stop a panic while avoiding/ignoring the true causes is doomed to failure, son. Didn’t yo daddy learn you that?

By all reports two out of three of the aformentioned “leaders” are pretty bright guys (if “book smarts” counts). One was the progenitor of this very crisis back in his days of working in the tranches at Goldman Sux, and I’m sure he is reveling in his handiwork. One of them is merely parroting what his handlers tell him (“repeat the same phrase over and over and there’s a chance it might become true”) and is clearly detached from the pain being felt by the people he was (sort of) elected to govern, protect, and defend the Constitution for. One of them is a student of a prior meltdown (“GD 1.0”) but unfortunately his expertise on that particluar crisis is tragically misplaced since this country’s markets are facing a completely different set of criteria this time around (See the Panic of 1873 for a more apt comparison). Oopsy.

“[I]nvestors have totally lost faith in the ability of policy authorities to control this meltdown.” –Noureil Roubini

The Housing Crisis would not have occurred had we not had Excessive Leverage and an unregulated Credit Default Swap market be allowed to get out of control. Put all three together, though, and you have a mix as potent as a cocktail Molotov.

The underlying value of the former two will be greatly affected  by how the first performs. Are the underlying assets worthless? No. But establishing a value is indeed a problem, and FUD about homedebtors walking away in the MSM exacerbates the problem.

So we have a Crisis of Solvency, followed by a Crisis of Leadership.

Which is the greater concern?

Well, this IS being handled by … (wait for it)

The Three Stooges of Financial Armageddon.

What they gonna do? [Paul Krugman]

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