"You know what the news is-- in a minute, you're going to hear the rest of the story"- Paul Harvey

Yesterday's ADP Employment Report turned out to be a major head fake after the release of today's initial jobless claims. Jobless claims jumped 38,000 to 407,000 which was way above the expectations of most economists.

The oversold rally is continuing despite today's jobless claims numbers and yesterday's jump in crude oil prices. Crude, precious metals, and commodities will go lower as the US Dollar is finally picking itself up off the canvas.

I was watching Fed Chairman Bernanke, Treasury Undersecretary Robert Steel, SEC Chairman Christopher Cox, and the head of the Fed's New York operations Timothy Geithner get grilled by the Senate Banking Committee on TV. I have to admit it was fun to watch these guys squirm a little.

The questions were quite pointed, and here are a few along with my own commentary;

Who let our financial system become so fragile that one failure jeopardizes the health of the entire system?"

Yeah you idiots! I want to know who these people are and I want them thrown in jail. I realize you guys represent the "untouchables", but we do have to put on a good show for the TV viewers.

Until you see executives from the major investment banks get thrown in jail, the testimony in front of the Senate Banking Committee is nothing more than a dog and pony show.

The people responsible for the Subprime Crisis was Congress and Bill Clinton when they repealed the Glass-Steagall Act in 1999. Glass-Steagall was enacted in 1933 to separate commercial banking from the securities business.

President Bill Clinton and the members of Congress responsible for Glass-Steagall's demise were repeatedly warned by General Accounting Office (GAO) that banks need to build up adequate capital levels before being allowed to enter the securities business.

Glass-Steagall prevented securities speculation from destroying bank capital, but since its repeal, look what has happened as a result. All of the people responsible for the repeal of Glass-Steagall should be held responsible for their misdeeds.

But, and this is the sad part, none of these people will be held responsible for their actions.