The Fed's Zero Interest-Rate Policy, ZIP for short, combined with traditional lax regulation, has or is resuscitating the Banks. They have sufficient revenue to meet all current obligations, although questions remain as to how solvent any of them would be in the face of a genuine accounting of assets and liabilities. Meanwhile, for individual investors it is either take unknown risks or get ZIP.

The losses are on bad assets that the Fed, Freddie and Fanny have either guaranteed or assumed. The $130 billion that is being discussed is for AIG and the automakers. The true losses could be half a trillion or more, so far.

The banks would do well to scream in agony, give every appearance of fighting Obama's bank tax to the death, while carefully making certain that it passes. If that is the worst that happens, they will have gotten off cheap and can keep keeping on, while the rest of us get ZIP. Kabuki theater for public consumption.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."