G20 meeting this weekend

World leaders are gathering in Washington this weekend to try to come to an agreement on a more open global financial market. Don't hold your breath that this "plan" will have any "teeth" to it.

In the largest gathering of its kind here in nearly a decade, President George W. Bush and some two dozen foreign leaders were to meet Saturday behind closed doors as they prepared to adopt an action plan for more openness in financial markets and an early warning system for problems like the speculation frenzy that fed the U.S. housing bubble.

The action plan would include measures aimed at making the global financial system more accountable to investors and more transparent to regulators, diplomatic officials said.

After a financial collapse, the magnitude that we are currently in, over reaching for more regulations are normal and in some cases prudent. Lets hope that the new administration will not "over regulate" as I feel it will destroy the entrepreneurial nature of the young. Clearly someone should have been watching out for us, and no one was. It starts with the President, but Barney Frank and Chris Dodd are not getting a free pass.

Lets hope that President-elect Obama can put a team in place that provides just enough regulation to prevent a repeat of this ever again.

A bigger problem facing the current and future administration is the "bread line" forming outside of the Treasury.

It is reported that 110 banks have filed for $170 billion dollars from the Bailout plan. In addition the Auto makers are looking for $25-50billion. There was a rumour running around the markets yesterday that Hartford Financial applied to become a Saving and Loan so that they could qualify for some of the Bailout package. This rumour sent stocks from up 50 to down 350. Who can blame them, where does it stop?

I know we are in very very very difficult time, but any aid should have to be met with change. The auto industry has been a mess for many years. If they want aid INSIST that management be changed. Clearly the plan drawn up by thee leaders has not worked for the past 20-30 years, a new direction is needed. That Labor gives concessions on benifit packages. These packages have been killing the industry for years and labor refuses to renegoitate. Without this no money should go to the automakers. NONE!

I will have a post on the dollar tomorrow.

Good Luck and Good Curreny Trading,