Kind of listening to all of the blather about the new regulatory proposals with one ear this morning. As I keep saying, don’t get too worked up, this thing is going to end up on a back burner for some time.

The most telling comments that I heard this morning came from Barney Frank and Chris Dodd in a post-announcement interview. Frank said that there was a lot to discuss and then indicated that the concerns over the Fed’s ability to lend money was one issue that needed to be reviewed. Dodd said that currently there is a lack of confidence in the Fed’s abilities.

If you can’t see the long knives coming out then you truly do need to make an appointment with the optometrist. The politicos are setting up the villain for all of this and it’s going to be the Fed, Greenspan and Bernanke. Next year’s elections are going to require that there be a fall guy. No way are these guys going to go out among the voters who are looking for revenge and not have someone to offer up.

Obama has opened up a Pandora’s box. I don’t know if that was or was not his intention but open it is and what we eventually end up with is going to be much different than the program you saw rolled out today.