Ridiculous Things in Bizarro World

1) Timothy Geithner on whether Federal money was going to be available to cities and states - "As for any assistance, I wouldn't use the words 'bailout' or 'federal,' I would say we're in close consultation with people who are looking at ways to make sure these markets are working so states and municipalities can meet their needs."

Translation: Federal Bailouts of states and municipalities are on the way

2) Unlike the rest of us the Federal Reserve is not interested in money. Accordingly it has postponed considering Goldman Sachs, Morgan Stanley, and JP Morgan's request to repay the TARP until the week of June 8. http://www.bloomberg.com/apps/news?pid=20601087&sid=a7MkO._fo1fw&refer=home

3) Senate Passes Credit Card Bill - In a bid to further reduce credit the Senate has overwhelmingly passed "a credit-card “bill of rights” that would curb fees and limit contract changes." http://www.bloomberg.com/apps/news?pid=20601087&sid=aPFv1avGReog&refer=home . It is interesting that the government along with the Federal Reserve is doing everything it can to increase the supply of credit in the market, and then they go and pass a bill which will undoubtedly make it harder for credit card companies to stay in business and will most assuredly decrease the supply of credit. Which is it guys?

4) New Housing Starts and Permits Fall to Record Lows. Mr. Stock Market is confused all day. He can't decide whether this is a good thing or a bad thing. On the one hand it means new inventory won't increase housing supply down the road on the other it means "green shoot" recovery isn't happening at all and it still sucks to be a construction worker.

5) One of my all-time favorites....the administrations goal of making housing more affordable. To this end the federal government subsidizes houses with tax credits, deductions, the FHA, Fannie Mae, Freddie Mac, ZIRP (Zero Interest Rate Policy), 1.2 trillion of GSE debt purchase courtesy of Mr. Bernanke, and many more. My question: If you want to make housing more affordable why are you trying so hard to stop prices from falling? Isn't that what affordable means...low price?

More to come later....