Obama looses control UPDATE

It seems a couple of hours after my last post, give or take, the administration moved to calm market fears, and mine, of a nationalization of the banking system. Not Obama directly, but White House spokesman Robert Gibbs, taking a break from attacking CNBC's Rick Santelli, said "This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring they are regulated sufficiently by this government. "

http://www.c-span.org/Watch/watch.aspx?MediaId=HP-A-15681

This statement caused large rebounds in the market before the close. The dow gained 200 points before closing back down 100. Bank of America closed about 33% higher than it's low for the day.

Markets can't be read well on an expiration day, the third Friday of each month. The real test of any statements will be next week. Does the Dow move above November's lows or not? That's the test for the market. The real test will be for Obama. He still needs to make a statement personally regarding his commitment to solving the banking problems within the confines of a private banking system. More importantly, he needs to grab Chris "Joe Biden" Dodd by the ear and muzzle him. We shouldn't hear the word "nationalization" leave Chris Dodd's lips... ever again.