When I was a kid we used to play with those little "super balls" that made unpredictable bounces and created unlimited fun. The harder you threw it against the wall the wilder the gyrating bounces. Adding to the fun was the thrill of knowing that if there was another vase broken, there would be serious hell to pay. Well, Friday's session was like playing with one of those super balls, although I can't say it was fun for everyone. It was certainly a thrill ride. It was one of those sessions that had people ducking for cover and writing off the entire market by two o'clock and then licking their chops over potential opportunities by the closing bell.

The market was all over the place as investors grappled with understanding the true message from the jobs report, figuring out net-net what all the earnings reports were saying about the future, and simply dealing with the notion that high deficits (like ours) is strangling several European countries into some kind of submission. What I take from the session is that there is a ton of money on the sideline ready to pounce. Last year there were several occasions when the market snapped out of a rapid drift or freefall to stage massive upside moves. I think that the same set up is in place right now. I'm not sure that there will be an event that turns it around, rather the swings that sees an exhaustion of sellers that allows those on the sidelines a chance to leap at inflection points may be in order. There is a good chance that we got one of those inflection points last Friday. But, if that was the turning point what was the catalyst?

For some reason the media doesn't talk much about consumer credit even though the consumer is 2/3 of the nation's GDP. There is much debate over how to jumpstart the economy, especially now that the federal government has botched the $787 billion stimulus plan so badly that another plan (this time officially called a jobs bill, although the first time out it was unofficially called a jobs bill) is in the works. It seems the things that have to happen is that people with jobs keep more of the money they make and small businesses have access to cash. Forget the gimmicks. While there has been less demand for credit among consumers let's be real, people want more access to credit not less. It's not that folks are eager to go out and spend money on things they don't need but 2009 was marked by massive slicing of credit lines and higher banking fees. Confidence is important and people feel better when there is something akin to a safety net in the form of more credit, not less.

Then there is the issue of small businesses having greater access to funds. Again, forget the gimmicks about hiring or buying a new copier these businesses need funding to forward their businesses. Ironically, one of the best news items from last week was Christopher Dodd saying he is going to push through with consumer financial protection legislation without the input of Republicans in the committee. I think that's great because it takes this action one step closer to dying on the vine instead of lingering sinisterly like a coiled spring ready to strangle the banking industry.

It doesn't help that the White House continues to say healthcare reform isn't dead and there is scuttlebutt of deals that are even more lopsided than those egregiously cut in December. I think that banks are prepared to lend, but many might hold off now to get a payoff from new government programs in the works.

Consumer credit is broken up into revolving credit and non-revolving credit. The former are credit cards where rates adjust and payments are made over a short period time, while non-revolving can be things like cars and student loans. There is no doubt that credit card issuers have been abusive and there needs to be strong laws regarding penalties, fine print, and eligibility. I like the idea of age limits and tackling aggressive practices aimed at young people, but what I haven't seen is education, and not just for 21-year old students. Consumer education should be taught in all high schools and reiterated in college. The fact is that all consumers should receive some education and take a test before they can activate their credit cards. Because, as awful as the industry has been, the fact is that people have harmed themselves with poor use of credit cards.

Let's not forget that it wasn't that long ago when credit cards were mostly for rich people. It was a super reward for their banking business. Now it's an integral component to people meeting their daily financial obligations. In fact last year was the first time in the history of this nation that Americans spent more via credit cards than cash or checks. That's amazing considering revolving credit decreased to $2.46 trillion from $2.56 trillion in 2009. Overall consumer credit declined for the eleventh straight month, and 14 out of 15 past months. But the decrease of $1.73 billion was much better than the revised decline of $21.83 billion for November.