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Market’s Biggest Threat?

Forget China, the weak consumer and housing. If you’re looking for one catalyst threatening to take down this rally, we’ve found it.

We’re talking politics and all the posturing that’s going on in our nation’s capital.

CNBC’s Bob Pisani told the desk the squabbling that resulted last week over whether to re-appoint Ben Bernanke as Fed chief is raising serious questions on the Street about how politics may affect monetary policy.

The stock market is clearly terrified of Congress trying to run everything, Pisani says. Government involvement in health care and banks have affected stock multiples of both these groups. Running monetary policy — even if indirectly — would be another blow to stock prices.

Meanwhile, whispers are growing about the political health of Tim Geithner. On Wednesday the Treasury Secretary will appear before Congress to answer questions about his involvement in AIG’s bailout when he headed the New York Federal Reserve.

Already at least one lawmaker has called for him to step down. Absent a "smoking gun" most analysts agree a resignation isn't likely.

However, Graham Fisher managing director Josh Rosner tells the Fast Money desk he thinks the inquiry will reveal a bombshell -- that the New York Fed was involved in a cover up.

"I think there's going to be significant evidence to show the New York Fed stymied the inspector generals inquiry time and again. And that they intended to keep information from Congress as well as the public by using national security."

And he goes on to say, "I don't think Geithner survives the year."

We know it's not the consensus view, but the speculation is out there. Intrigued? Watch the video above and hear from Fisher for yourself.


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Trader disclosure: On January 26th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (INTC), (MSFT), (NUE), (BTU); Najarian Owns (AAPL) Call Spread; Najarian Owns (CTXS) Call Spread; Najarian Owns (GS) Call Spread; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (PFE); Najarian Owns (XLF) Calls; Finerman's Firm Is Short (IJR), (MDY), (SPY), (UNG), (USO), (IWM); Finerman Owns (AAPL); Finerman's Firm Owns (BAC) Leap, (BAC); Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (KFT); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (WFC) Preferred; Finerman's Firm Owns (WMT); Terranova Owns (BAC), (JPM), (XOM), (MMM), (FCX), (EMC), (AAPL), (DELL), (MSFT), (QCOM); Terranova Is Short (CMA), (ESS), (CAL); Terranova Is Long Copper Backwardation Futures; Terranova Is Long March 2010 Copper, Is Short July 2010 Copper

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
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