Monday, March 23, 2009

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.

2 comments:

HR said...

I especially like your comment "If someone showed up on my door step to buy this crap...." Just because the goverment has a program, doesn't mean it's going to be successful. Agree about Geithner...Hopefully one day I will be able to trade full time for a living/// Good Trading
http://traderharry.blogspot.com/

Jeffrey said...

Interesting article on commercial real estate defaults http://www.bloomberg.com/apps/news?pid=20601109&sid=aR72TKlxCQ7A&refer=home so maybe the collapse is on the way.

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I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.