What Bush Won't Say to Help the Market

True leadership is needed from the top if we are going to battle the two-headed dragon of housing and credit problems.

Many observers, including our own Doug Kass, believe that the only possible solution is a "Marshall Plan," a reference to the post-World War II reconstruction of Europe.

I agree with Kass on the need. In a prior article, I explained why the political environment was not conducive for major changes.

The president is the only source for such policies and the forum is often the State of the Union Address later this month. In the spirit of Kass' possible events for 2008, I present a State of the Union scenario for a comprehensive plan.

Those following the prospects for financial stocks can use the plan as a scorecard. Three stocks that I'm long, and therefore serve as my scorecard, are Goldman Sachs(GS Quote), Merrill Lynch(MER Quote) and Fannie Mae(FNM Quote).

I am not optimistic, but the fantasy scenario is interesting. The president's speechwriters are already at work on the plans for the State of the Union address, and the president himself is already showing some movement in this direction.

Below, I imagine what it might be if the president were to take the necessary leadership mantle. This deals only with the housing and credit issues, which would be the conclusion, and most important part of the speech.

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President Bush: I turn now from the threat to our country by our external enemies to a challenge that is just as serious. The power of our great nation depends upon our strength within -- the resolve of our people, reflected in character and commitment, but also the enduring strength of our economy. The triumph of freedom and democracy rests upon the success of our system, emanating and growing from what we do at home.