Monday Gap Up

Industry analysts estimate that the nation’s banks are holding at least $2 trillion in troubled assets, mostly residential and commercial mortgages.(NYT) The goal of the plan is to leverage the public TARP capital with money from private investors to buy up as many of those toxic assets as possible and free the banks to resume more normal lending.

I’m still very concerned about commercial real estate, how do you save something that hasn’t collapsed yet? It’s coming as I’ve said for months now, so be careful on that front, the group is still just good for a trade.

If I was a hedge fund and Uncle Sam came knocking for help to buy this crap, I’d run the other way, let’s see how it goes. I still don’t trust Geithner, I feel like we’re sending a cub scout on a special forces mission, but that’s just me. Be careful of ” gap ups” and wait for your spot.

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