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Fed Attempts To Jump The Sharks

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Demonizing sources of capital has consequences. The same is true of creating a market environment that is so unpredictable and subject to the slings and arrows of populist ire that no one wants to dip a toe in. Consider the current TALF situation:

"I can do very well for my clients without venturing into federal waters which are inhabited by sharks," said David Kotok, the chairman of Cumberland Advisors Inc. in Vineland, New Jersey, who manages about $1 billion. "We are leery of doing anything with the federal government."

While Wall Street has been slow to take up the cautionary baton, pulling the rug out over and over again has some effect, after all.
Fed Struggling to Win TALF Investors Wary of 'Sharks' [Bloomberg]