Questions To Ponder - Ulli... The ETF Bully

MarketWatch featured some interesting “Questions to ponder while awaiting bailout:”

We have a new administration in Washington and a new power structure on Wall Street.

We’re getting $800 billion in stimulus and $1 trillion more to get rid of bad loans.

Yes, good times are right around the corner. Wait for it.

We’re going to feel good soon.

Until then, here’s a set of questions and thoughts to chew on:

What’s all this fuss about starting a “bad bank”? Don’t we already have Citigroup?

Will the new bad bank get a brand-new $50 million jet, too?

Speaking of jets, does U.S. Airways pilot Chesley “Sully” Sullenberger, who saved all 155 lives in an emergency landing on the Hudson River recently, know anything about mortgages? We could use a soft landing.

Could Sully climb into the cockpit of Citi 1, finish that flight down to Charlotte and rescue Bank of America Corp. CEO Ken Lewis by showing him how to use a parachute? He may soon need it.

It seems Lewis shops at Ikea, but does he eat the meatballs?

By the way, does this mean former Merrill Lynch CEO John Thain isn’t going to be on MTV’s “Cribs”?

Moving to Davos, considering how well past forums — which included such luminaries as Thain and former Lehman Brothers CEO Dick Fuld — have prepared us for economic challenges, who’s presenting this year? Alleged bilker Bernie Madoff and rogue trader Jerome Kerviel?

If Wall Street bonuses totaled $18 billion but the industry showed a net loss of $35 billion, as the New York state comptroller’s office said Wednesday, does that mean bonus payouts will double next year if the industry loses $70 billion?

What does it say about the state of the strategic merger that Pfizer Inc. is willing to pay a total consideration of $67.1 billion for Wyeth but Dow Chemical has cold feet about its $15.3 billion deal to buy Rohm & Haas Co.?

How are the final-year MBA students at Wharton and Harvard feeling about job prospects this spring?

Interesting questions indeed. The greatest focus will be on the creation of a ‘bad bank,’ which seems to instill the false hope that the end of the recession is near as soon as this toxic asset dump has been established.

In my view, the initial effect on the markets will be one of relief at first followed by a rally before the reality sets in that simply shifting bad assets onto the back of the already burdened taxpayer will not end this bear market prematurely.

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