I think today’s market drop is the conspiracy hatched by banks and analysts. Many retail investors are already out of the market. Today’s market drop is the blackmail to warn the government to throw more money at the banks without any oversight.

Ok, I am getting carried away. This is nonsense. Think about it. Everyone was praying for Senate to pass the stimulus bill. Now, there is an expectation to know all the details of bailout plan as quickly as possible. Treasury Secretary Timothy Geithner gave the speech about how the Fed is going to handle the crisis. However, market participants blamed that Mr. Geithner’s speech lacked details.

Hey guys, it’s the plan for one trillion dollars! It’s not your household budget. It will take time to come out with specific plans and actions. The bank managers and analysts want to see the green light to their industry as soon as possible. When they don’t get to see it, they screw up the market.

Referring to Mr. Geithner’s announcement, which didn’t specify how the government would determine the prices of underwater credit bets it wants to take off of banks’ hands, Richard Peterson, director of risk strategies at Standard & Poor’s in New York, said: “It’s almost like a chapter out of Dickens where you end with a cliffhanger wondering what’s going to happen next to the characters.” See… is the Fed running some kind of show?

We are in a real mess. It is getting more and more complicated. Obama or Geithner can’t do any magic to solve the issues in a day or two. It’s going to take lot of time. Banks that are salivating for tax payers’ money won’t get it without any strings attached to it. Hedge funds that are dying to take some money from Fed won’t get it easily as well. Everything will take time for careful evaluation and planning.

Until then, retail investors should not worry about daily swings in the market. Let the bank folks torture themselves with their own chaotic trading pattern. Let the rest of us stay away and move on with our daily lives.

To quote Stephanie Cutter, Treasury spokeswoman: “We understood that some might be disappointed that we didn’t announce a large bailout program. But our focus is on what will be the best comprehensive plan to protect taxpayer dollars, jump-start lending and bring forth a long-term financial recovery, not the hour-by-hour movement of the markets or a particular company’s stock on any given day.”

An economic stimulus plan, while it may be necessary, doesn’t mean that we can just sound the all clear in the stock market. I don’t particularly enjoy being a person who is so cautionary when the stock market seems so excited, after all I am cheering for the stock market to do well and I hope a bull market continues soon.

Why do I post about this today? I say this because today the S&P 500 rose by about 3% on investor optimism that the economic stimulus plan would be passed very soon. In fact, for the week the NASDAQ gained about 7%, which is quite startling given the amount of bad economic news there has been. Granted, the stock market’s performance over the last year has built in a lot of bad economic news, and I don’t necessarily think there is a huge downside from this point, but it simply doesn’t make sense for stocks to stage massive rallies at this point.

This morning the Bureau of Labor Statistics reported that nearly 600,000 Americans lost their job in the month of January alone. This was the single biggest monthly loss of jobs since 1974. The unemployment rate jumped to 7.6%, and it is sure to rise more in the coming months. Despite this data, the stock market was off to the races as if nothing was wrong.

There have been many arguments regarding what is the right type of economic stimulus for our economy at this point. Democrats and Barack Obama lean more toward creating jobs by spending money on infrastructure building, while Republicans want more tax breaks for small businesses. Since the Democrats have the majority in congress and the Presidency the final economic stimulus bill will certainly be more to their liking, but regardless of who’s version gets passed this will take a long time to work through. Just a note of caution to all investors, remember that we are in a completely different economy than any of us have ever seen, and a cure will take quite some time.