Shit Or Get Off The Pot

What the heck is the government waiting for? They either need to nationalize ALL the banks (won't be able to get away with only BAC and C) or kill the rumor by saying nationalization isn't even on the table.

The market will not go up until this happens. We will be in a slide to Dow 6,000 if they let this BS continue.

 

The government needs to say SOMETHING! This is going to happen everyday until something changes...

 

If they do decide to nationalize ALL the banks Dow 4,000 isn't out of the question.

 

Here you go:
*FEDS LOCKHART: 'BANK NATIONALISATION `SUBSTANTIALLY' OFF TABLE'
*LOCKHART:'UNAWARE' OF SERIOUS WEIGHING OF BANK NATIONALISATION'
*LOCKHART 'SAYS DEFLATION A `CONCERN,' NOT MAJOR ONE NOW'
*LOCKHART: 'TREASURY NOT RULING OUT GUARANTEES OF TOXIC ASSETS'

 

They have to wait until after options expiration to announce anything.

 

I have very little doubt that the DOW will be at 4,000 within 2 years regardless of the intervention/interfering.

 

How about passing a little gas...

Call it TARP Investment Fund (bad bank for short)

Banks, finance co's, insurance co's can sell their distressed assets to this govt (taxpayer backed) fund at current value on their books.

Govt pays cash. Govt gets a flex note. MTM is suspended while assets are in the fund. Fund life will be 10 to 20 years. 1% origination fee. Govt gets 10 to 20% on the back end.

Examples:

Govt buys assets at 20 cents, in ten years govt sells asset at 40 cents. Govt takes 20% profit of 4 cents, bank gets back 16 cents via flex note.

Govt buys assets at 70 cents, in 10 years govt sells asset at 40 cents. Govt tacks on 20% (14 cents) and gets 44 cents from bank via flex note.

Not perfect, but kicking this idea around as hypothetical...

Let's pass more gas....better than a turd floating in the bowl