I’m still sitting out the markets and quite frankly, they’re still a mess.   Absolutely nothing has changed, the banks are still insolvent and the only thing I hear that makes any sense is that the recovery MIGHT begin in 2010.

The government is predicting a worst case scenario of banks losing 50% of capital if unemployment continues to rise so understanding how government works, the “worst case scenario” actually equals “the most likely outcome.”

Remember when Ben Bernanke said everything was “well contained” in 2007 and the whole mess was ONLY going to cost $150 billion?  If you forgot, click here for a refresher.

Nothing has changed, there are a whole new set of “games” being played with banks stress tests, FDIC shenanigans, and new rules and regulations but nothing has changed.     I’m still sitting it all out until we get some clarity and stability.