Why not try Capitalism instead of Bailouts
Bank lending practices coupled with Greenspan’s no-regulation approach have been a big factor in the economic scene that has developed. Now the banks have no money and they squirrel away all the bailout money the government gives them, instead of lending it out to borrowers. There is only one entity that has access to the money needed to put banking on a firm foundation, the US Treasury Department. From that premise why not have the Treasury start buying the cheap banking stocks through acquisitions. Obama for all his talk of being the agent of change is being held back by two old school economist/bankers, Sommers and Geithner who are afraid to cross the line and put their old buddies out.
The New York Times columnist/economist Paul Krugman has an interesting article on this subject, see link below.
We are waiting for long-term trend buy signals before adding to our core stock positions that we have held for some time.
The EMA ETF Fund NAV was 966 at yesterday’s close.
7:04 AM CST