“Nothing is more important right now than changing the marked-to-market rules and the FDIC limits. The marked-to-market rules give us a little forbearance, which is needed until we get through this period and get some sort of plan, and we need FDIC limits to be higher so people will put their money in the bank and not into Treasuries or their mattresses. Giving some room to marked-to-market might end the ridiculous process of shotgunning banks into marriages, even though there are some banks that can make it. (And how is it that Downey Financial (DSL) and BankUnited (BKUNA) keep operating and Wachovia was forced out? ) The regulators are just reacting to the stock prices and shutting these banks. That has got to stop, and changing marked-to-market can do it. Also, there has to be a recognition that we could have seized Citigroup (C) in 1990 if we wanted to, on the basis of the stock and the financials, but the regulators acted responsibly, and the bank found a sugar daddy and didn't have to be closed. You can see what is happening to Citigroup, as that is the best example. It will now be able to digest Wachovia in a good fashion and then get this whole thing done in a positive way with forbearance. Citigroup, alas, is no longer a black hole. In fact, now that Ford (F) and General Motors (GM) got their bailouts, there are no black holes, endangered companies that are big enough that they can bring down the system. No matter what you think of Wachovia, the system proved stronger, in part because the bonds were preserved. What would propel this rally even further? Of course: a deal. But if the FDIC would somehow insure "super CDs" from highly qualified institutions, places like Goldman Sachs (GS) could raise $50 billion in an hour. Think of it like this: The FDIC insures $25 million CDs from qualified institutions for a small fee per million, qualified meaning well in excess on Tier One capital. The companies are desperate for a return on their cash, and this would be it. Even better would be if the Fed were to cut the funds rate to 1%, where it was in 2003, when the economy was in much better shape and before St. Ben was running the joint, and then the banks could refinance and invest in the curve and do the super CDs to get lending going again. So much can be done, but I am just glad they are talking about raising the FDIC limits, as that will inspire so much more confidence, as the $100,000 limit had become an anachronism. No wonder we are having a nicer day. That plus, guess what, stocks have gotten darned cheap! Not everyone needs credit. Look at the biotechs! They got too cheap to be believed! Don't believe me? Ask Adam Feuerstein!

From a recent Mad Money show: "At times managements can trump even the most difficult markets. This is a fabulously run company and I endorse it."

From a recent Mad Money show: "This is a very run company that unfortunately has auto companies as customers. I cannot recommend them in this difficult environment."

From a recent Mad Money show: "Google is best in show, but reports are coming out that Yahoo is weak and that will have to spill over to Google eventually. I see no rush to buy advertising supported companies."

From a recent Mad Money show: "No, too dicey. I'm sticking with my "Fortress Four" banks and that's it."

From a recent Mad Money show: "Chinese power play? No, I can't go there. That market is down 59% and it's too darn hard."

From a recent Mad Money show: "I think Lowes is almost a buy. It's taking share from a lot of stores. I'm two points from pulling the trigger."

From a recent Mad Money show: "No, no. I see no particular turn there and I don't want to own the stock."