Wednesday, March 4, 2009

The "free money" feeding trough is spelled TALF

If the TALF is offering up 20%+ returns for those hedge funds that want to get involved, what are the returns that the stock market is offering, now that it has the blessings of Government?

The Obama housing plan, which was just released, is good. China has another, newer stimulus plan. Oil is showing a bid.

On April Fool's day, the average Joe will get a little extra in his paycheck.

Mustard seeds for the bulls, but when the markets are in such a technical position where they are poised to rally, the effects could be pronounced on stocks.

Especially, when hedge funds will be lining up to get the government largess at the TALF feeding trough.

It will be tough to be bearish on stocks, when the Government is subsidizing your returns.

And even the Government has made it clear to these hedge funds, that they will pay them to be bullish.

Those participating in the TALF, won't have any restrictions on their pay despite Shelby's protests!

March 3 (Bloomberg) -- The Federal Reserve and U.S. Treasury eliminated executive-compensation limits for companies that bundle loans accepted under a new $1 trillion program, indicating the rules may have hampered efforts to start the plan.

The rules won’t apply to the Term Asset-Backed Securities Loan Facility out of “desire to encourage market participants to stimulate credit formation and utilize the facility,” the New York Fed said in a document on its Web site today. The government separately said it will expand the TALF to support vehicle-fleet leases and loans for business, construction and farm equipment.

The unemployed get another $25 a week to keep them in check, and the bears on Wall Street get millions to change their viewpoints!

And to get fed at the TALF trough!

1 comment:

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