LOLFED

I’m in ur financial system! Takin ur institutions under conservatorship!

A take on Bernanke and Paulson’s manifest destiny, from Lolo:

From WSJ:

WASHINGTON—The Treasury Department is “not talking about nationalizing” struggling mortgage giants Fannie Mae and Freddie Mac, according to a person familiar with the administration’s thinking.

In an unusual move, Treasury Secretary Henry Paulson issued a written statement Friday saying that the Bush administration’s “primary focus is supporting Fannie Mae and Freddie Mac in their current form.”

The person familiar with the matter said the statement was intended to discount reports suggesting that the administration is considering a plan to place one or both companies in a “conservatorship”—in effect, taking them over—if their problems worsen.

(thx to Philippe for the pic suggestion)

Such harsh verbiage from Hammerin’ Hank has been part of what brought TEH PAIN into the market today; we’ve visited territory below 11000. The bonds are less of a visit to the craps table than the stocks if you think there will be a bailout anyway. I don’t think the gold traders believe his hype one bit.

WASHINGTON, April 12 (Reuters) - Financial leaders on Saturday urged the International Monetary Fund to sharpen its oversight of the global economy, which is burdened by surging food prices and a credit crisis that shows no end in sight … U.S. Treasury Secretary Henry Paulson warned of “more bumps in the road.”

Out of my fridge, Hank!

As the WSJ’s marketbeat blog says… more writedowns? Let’s party! UBS wrote down oodles of noodles this morning and kicked their chairman to the curb. So we’re rallying because hope springs eternal that each new writedown is the last.

A: A burning desire to REGULATE.

NYT reports: “The Treasury Department will propose on Monday that Congress give the Federal Reserve broad new authority to oversee financial market stability, in effect allowing it to send SWAT teams into any corner of the industry or any institution that might pose a risk to the overall system.”

SWAT teams? You mean… with HELICOPTERS?

NO NEED TO WORRY FOLKS! THE FED IS ON IT! Hank sez: “[O]ur focus, our No. 1 priority is the stability of our financial system.”