Some would say it’s already pouring in fact.

This via Umair, who never disappoints in puttings thoughts together concisely:

Guys, I’m going to write the Bear/macro situation in detail later. It’s really too depressing to dwell on at the moment.

Here’s the quick version. You will read a lot of complicated analyses today.
Some are very, very good. The real story is, I fear, pretty simple, and very scary.

As simply as I can put it: the Fed has just signalled with absolute certainty that it has absolutely no interest in helping disinfect the financial system.

The Fed just signalled, with absolutely certainty, that it will do anything and everything in it’s power to help stave off the accounting that’s long past due. And without that accounting, there is no incentive for new DNA.

Bailing out Bear comes, ultimately, at the expense of every security holder across the larger economy. Because the Fed just vaporized (again) the incentive for a true process of settlement and valuation of the infected assets to really begin.

Do you think JPM has different incentives than Bear? Of course not. The machine’s just as broken as it was last week – there’s just more grease in the gears.

That’s the Japanese story: spending almost 20 years trying to avoid a recession by devaluing the economy into oblivion – because the truth of broken balance sheets and infected DNA was too painful to face.

Or, a little more darkly – because the cronyism between banks and central banks was intense enough to let both parties abdicate their fundamental responsibilities.

It’s funny, isn’t it – how the Fed’s bailout makes no mention of Bear management. What a coincidence.

We are now entering dangerous waters – the kind where economies get blown up for decades.

I suggest you all spend a few hours thinking first about how to make sure Bernanke’s shock and awe approach to policy doesn’t end up…ummm…destroying you personally – and then we can chat about strategy, finance, etc, later tonight.