Good evening.

After another bloodbath in the market today, we are now down approximately 20% since Obama took office.

It has now been several weeks since the Boy Genius Tim Geithner threw up on his shoes and ran out of the room since becoming Treasury Secretary. The market will not turn around until he comes out with a plan that works to deal with the banking problem.

The problem is this:

1. The banks can not start lending like normal until they know how to value theri own assets.

2. They can’t value their own assets until there is a market for the mortgage backed securities.

3. But there is no market for the mortgage backed securities cause the Treasury and the SEC keep sticking with the “Mark to Market” valuation model.

4. But instead of deal with this, Geithner has pretended to be otherwise busy doing “stress tests” of the banks, as if that accomplishes anything. This just sends a loud and clear signal to the market that he has no clue.

Look for the market to open on the positive side tomorrow as stocks are getting so freaking cheap now that there has to be a bit of a bounce just due to bargain hunting. Most of the short sellers I know of have covered their shorts now cause they figure that with the market dropping 11 of the last 12 sessions it’s bound to go up a bit one of these days. But at the first sign of something else stupid coming from the White House, they will slam the market with more short sells.

But look for another large drop in the market yet again this week.

Lenin and Marx have taken over the White House.