Important Day in DC - White House

Obama today welcomes the top Banking CEO's to the oval office for a roundtable of meetings. Inside sources understand that this meeting is similar to the meeting that Paulson/Geithner had with the bank CEO's just 7 short months ago. In that meeting the ceo's were not allowed to leave until they signed on to the Paulson plan of rescuing the banks. Today hold's great interest because Obama will likely inform the banks that the bankruptcy proposal abuzz in DC is very likely to pass along with asking for their 'allied interest' in curing the financial meltdown. Well, if the BK law passes and judges are allowed to 'cramdown' mortgages to the level of the remaining equity value of the home you can expect bank ceo's to push back harshly and they will likely stand up to Obama about additional changes he should expect to occur.

All in all, 1) expect the housing mess to continue for about anotherr 2 - 3 years as values continue to decline, 2) expect banks to tighten lending requirements even more, 3) prepare for the financial arena to sieze up, 4) watch as more banks are mentioned in the 'nationalization' talk and 5) see how the govt allows the irresponsible borrowers get their 'get out of jail free' card while the banks get hosed therefore depressing banks shares and lending more and more.

Its Pennsylvania Avenue and the Hill that is pushing its 'populist' and class warfare agenda. This will ultimately come back to bite America in the ass. DC bites the hand that feeds the country and the world, expect the rabies from the rabid DC dog to be very infectious and lead to a lot longer illness. What DC should do is ask the banks, 'What should be done to lift the current stalemate off the lending arena? How can we help?' Instead, its the lawmakers who are imposing their will and instead of asking those type of questions they are entering the discussion not as a topic of discussion, but as a 'matter of fact' that its our way or the highway. Plan to see many bank ceo's to leave the white house and head back to NYC with grins but clutching their briefcases with white knuckles. This is a standoff that the American people will end up being left holding the bag on that will in no way be kind to us. But this will ultimately not be at the hands of the banks but of our masters in DC. Expect 2010 to be a good year for republicans at the voting booth.