SEC threatens to do its job, I don't believe it.

The SEC filed a CIVIL lawsuit Friday against Goldman Sachs, accusing the corporation of fraud.

The NYTimes has an article Sunday stating "SEC puts wall street on notice", I don't believe it.

In general, any attempt, no matter how weak handed, that the law matters is a step in the right direction. Further, now that the SEC has filed a Civil lawsuit against Goldman, I would expect in the weeks to come every other country will start showing it's citizens that it too, is posturing against wall street and try to slap their own suits.

Any country that files a suit after the SEC does, shows it is a spineless sheep, unable to lead, and unable to defend it's own citizens. I will not be impressed. Fraud has been staring everyone in the face, as I have pointed out numerous times. To follow the SEC lawsuit and get a "spine" to do the same in their jurisdiction is laughable. I hate to sound like an arrogant American, but true independent leadership requires LEADING not FOLLOWING an American institution, the SEC. But I digress.

The SEC filled a CIVIL lawsuit, not a CRIMINAL one. This is a critical point. Until I see criminal prosecutions, I remain unimpressed. I wouldn't be surprised if the market resumed its rally in weeks or months to come. I need to see the S&P 500 break below 950 before I even give this downturn any credit.

I still envision that the criminal (if ever) prosecutions will start only AFTER there is financial decimation at these companies, rendering criminal prosecutions too little, too late. Once criminal prosecutions happen, that will be the signal to me the US economy will be on the mend.

So for now, its wait and see, granted the market could have finally topped and started a multi-year downturn, but I doubt it. A day does not make a trend change, nor does a week. For now its watch and see.