People Don't Know Where The Bodies Are Buried

There's nothing like hitting the ground running is there? Never can a US president-elect have had so much on his plate on Day 1 in office.

As fears of much greater than originally anticipated credit losses at top US banks mount, the new Obama regime are said to be considering widespread sweeping steps to kick-start lending.

There is talk of the creation of a so-called "Bad Bank" which would take on billions of dollars worth of troubled securities, reducing bank write-offs and freeing up cash.

If some of the likes of Bank of America and Citigroup are questionable, then everybody is questionable. Nobody knows where the bodies are buried. Are the book value of assets actually worth the paper they are written on? It seems to be a case of "if in doubt, do nowt."

It's becoming increasingly apparent to Obama and his advisers that the removal of all the mutual mistrust in the marketplace, is the only way to get lending back on an even keel.

Interesting times lie ahead. Expect action sooner rather than later.