Massad to be new derivitives regulator

The NY Times reported that Obama nominated a new chief of derivatives regulation, Tim Massad.  Obama said, “I have every confidence that he is the right man to lead an agency designed to prevent future crises — because I think it’s safe to say that he never wants to have to manage something like TARP again.”

Of course Obama is a proven liar and con man so you can never believe anything he says. About anything.  Ever.  Besides, isn't this the same thing he said about Kate Sebelius?  In any case, this appointment is like burning down the barn and then hiring a fire chief to make sure this never happens in the first place.   In other words, the damage with derivatives is already done.  There is no amount of wisdom or right moves that can unwind the massive leverage in those without also unwinding the rest of the Ponzi, much of which is needed in order to maintain our appearance of being a 1st world nation.

If you take away the derivatives then the massively leveraged long bets on the stock market which these contracts were put in place to enable must be unwound as well.  And that means the last one in the stock market is left holding an empty bag.  I've already posted that I think the S+P recently peaked. Risky call?  Of course!  What fun is there to life without a bit of informed risk taking?  I've also already stated that I think the market is ripe for panic. This new appointment is the kind of thing that could serve as a catalyst.

Remember, the market is forward looking.  Lack of recognition of this fact is what hurts so many "investors" (gamblers).  The market does not wait for something to happen, it runs to protect itself the minute it thinks that any further delay would cause unacceptable risk.  Of course, the market can easily shrug off this new appointment.  I'm not saying it will be the catalyst.  But I am saying that there will come a catalyst and there is nothing Obama or anyone can do about it except eventually act like Venezuela is acting today.  Not if but when.