Tuesday, January 27, 2009

President Obama's Financial Team is Moving at the Speed of Light; POTC's Conviction of S&P 900 By Week's End is Extremely Strong

"The Obama administration is close to deciding on a plan to set up a so-called "bad bank" to buy bad or illiquid assets from banks, CNBC reported Tuesday, citing banking industry sources. The initiative could be announced as early as next week. -The plan would use a model pricing mechanism to value the assets, taking into account the government's ability to hold the assets, perhaps to maturity. The government may end up paying more than market price for the assets but would get common equity from banks if the securities are bought for less than the assets are shown to be worth on the banks' books. It was unknown how the government would pay for the assets." -Web site: www.cnbc.com -Dow Jones Newswires; 201-938-5500 (END) Dow Jones Newswires January 27, 2009 17:15 ET (22:15 GMT) Copyright (c) 2009 Dow Jones & Company, Inc. 05 15 PM EST 01-27-09
We believe the Chicago Mercantile Exchange Group (CME) will Benefit from the new Administration's Policies; The Rampant Pessimism & Doom & Gloom Argument may well be Baked Into Current Prices (especially financials); What IF President Obama's team doesn't Over Reach and Over Regulate? The Pendulum could Swing and Ruin Short Portfolios. Here's a chart of CME, a stock we feel is completely oversold:

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