Time if of the Essence; The Second $350 Billion

President-elect Obama today asked Congress for the Second $350 Billion from the Tarp(officially President Bush had to ask for it). Congress has fifteen days to reject the Obama administrations demand for the funds. Will this Congress stand in Obama's way during the first few days of his new government? This answer is most probably yes. It seems that Nancy Pelosi & Barney Frank want Barack Obama to understand that they will be participating in the final decision. The first $350 Billion was invested in the Banking system to prevent a depression. It is time to deal with the housing crisis by dealing with foreclosures. I believe that Obama will focus on this issue immediately. Time is of the essence!

Random thoughts- Will Citi & Morgan Stanley merge their brokerage units?...yes , look for the announcement within 24 hours....Morgan Stanley will be the Firm with the most retail stockbrokers....all dividends on banking stocks are in question...look for the elimination of dividends within months....2009 starts out with the best actor at the Golden Globes being a WRESTLER....no wonder the market was down today..where is the Obama rally? any day...

Banks and the $700 Billion TARP

The question of the day is how long will the $700 Billion dollars in the TARP (Troubled Asset Relief Program) last? The Federal Reserve approved American Express as a Bank this morning. The government is investing at least $250 Billion to recapitalize U.S. financial institutions. Is it time for major industrial corporations to convert to Banks?
As I walk down NYC streets, I notice an abundance of vacant taxi cabs driving by. I also notice a lack of customers in boutiques and department stores. Can we conceive of Macy’s, Yellow Cab or General Motors as a Bank? In time we may be able to individually convert into Bank holding companies.
It is clear that TARP # 2 will be in place next year when President Obama takes office. We probably will need another $900 Billion to fund TARP #2. The worst Credit Crunch since the Great Depression is here.
Random thoughts… Las Vegas is in the news today. General Growth Properties (the second largest mall operator in this country) may declare bankruptcy next year as it is having trouble refinancing its debt. GGP owns and operates retail shops at the Venetian and Palazzo hotels in Las Vegas. The Las Vegas Sands Corporation which owns the Venetian and Palazzo has lost 94% of its market value this year. They raised $525 million today to avoid bankruptcy…….remember the market can’t go up unless every willing and unwilling seller has sold. We are getting close….