Fed Holds Funds Rate; Buffett: U.S. May Need More Stimulus; Jobs’ Liver Transplant Confirmed; Fewer Americans Traveling on 4th Despite Lower Gas Prices; Monsanto Profits Drop 14%; SEC Proposes New Rules for Money Market Funds; Recession Yields Fewer Millionaires

In February, I wrote that the decline in stocks was just about over. Why? There was more money available to buy shares than at any time in almost two decades. The $8.85 trillion held in cash, bank deposits and money market funds was equal to 74% of the market value of U.S. companies, the highest ratio since 1990, according to the Federal Reserve.

A worsening economy has pushed the market down. A global recession has pushed it down further. Will the latest Wall Street scandal push it down more?  Some of the hundreds of losing hedge funds have written letters to investors saying that they won’t accept requests for redemptions until a later date.

Underlying the credit crisis gripping the U.S. and world economies is a crisis of confidence. Blame has been laid at the feet of the U.S. Federal Reserve, and an investment bankers’ brew of toxic financial products. Ultimately, however, it was the supposedly trustworthy rating agencies that got everyone to drink the poisoned Kool-Aid.

Ben Stein is such a juicy target to beat up when he’s wrong.  Which is frequently.  I’m shocked I’ve done it only once before.  Beating him up is like beating up Kudlow, Cavuto, — heck, all of the Team Bush apologists who wouldn’t recognize genuine free-market capitalism if it bit them in the ass — all at once.

From Bloomberg:

A U.S. Securities and Exchange Commission investigation into credit-rating companies found the firms improperly managed conflicts of interest and violated internal procedures in granting top rankings to mortgage bonds.