Would you buy anything from this man, even an opinion?:

“I know Americans are concerned about the adjustments that are taking place in our financial markets,” Mr. Bush said at a ceremony to welcome the president of Ghana. He added: “In the short run, adjustments in the financial markets can be painful — both for the people concerned about their investments, and for the employees of the affected firms. In the long run, I’m confident that our capital markets are flexible and resilient, and can deal with these adjustments.

  Or this man (Treasury Secretary Henry Paulson)?

“I believe that there is a reasonable chance that the biggest part of that housing correction can be behind us in a number of months,” Mr. Paulson said. “I’m not saying two or three months, but in months as opposed to years.”

   At each turn, people are being told, "don’t worry, the worst is past us, we’re coming out of it". But, the fact is: THEY HAVE NO IDEA. The Dow dropping 500 points is just a symptom: people are scared and fear is driving the selling. Banks are trying to horde cash and get rid of bad assets–but no one is buying.

   The best take on this was a column by the ever-extremely smart and penetrating Gretchen Morgenson, in a column she wrote on Sunday that I am carrying around to read to people:

SO, ladies and gentlemen, how does it feel to be the new owner of those two big and banged-up mortgage companies, Fannie Mae and Freddie Mac? Not exactly the kind of real estate you were looking to buy, you say? Felt you had swallowed enough garbage after the Bear Stearns bailout tapped you for $29 billion?

Make no mistake: we, the American taxpayers, are amassing quite a portfolio of flotsam and jetsam in the mortgage bust. It certainly brings new meaning to the notion of an ownership society, doesn’t it?

To be sure, the terms of the Mac ’n’ Mae rescue deal are still sinking in. And it will be years before we know how much taxpayers will have to pay for the privilege of backing these out-of-control entities. But in the meantime, here are some of the joys that ownership in Mac ’n’ Mae might bring.

The proud new owners — the taxpayers — could be asked to cover such niceties as the pay packages awarded to the chief executives, Daniel H. Mudd at Fannie Mae and Richard F. Syron at Freddie Mac, as they exit the accident scene. Estimates for what these arrangements might cost: $24 million in severance, retirement benefits and deferred compensation for both men.

That’s not all. When the inevitable shareholder lawsuits are filed against Mac ’n’ Mae’s executives, who professed until the bitter end that their companies were in fine financial shape, who might cover the costs of defending those suits?

Why, you and I, the taxpayers, silly.

And, in another twist, we may also be asked to cover the legal bills of Franklin D. Raines, the former chief executive of Fannie Mae, who was ousted after that company’s accounting scandal in 2004. Under the terms of his separation agreement, Fannie Mae paid these bills.

   And that sums up the reason we can’t rely on the mandarins of finance.