Dr. Doom: Nationalizing Banks is 'Market Friendly'

Yahoo Finance ^ | 2/24/09

[marshmallow]

You claimed trillions. That would be more than one. So what's the real number? ?

Yes I did.

I blindly assumed that TARP I (~$700-800 billion) plus Son of TARP (~$800 billion) allowed me to use the term "trillions."

Now skewer me for not saying "hundreds of billions". An unforgivable exaggeration.

[Toddsterpatriot]

I blindly assumed that TARP I (~$700-800 billion)

I hadn't heard that the second part had been spent yet. You claiming it has?

Now skewer me for not saying "hundreds of billions". An unforgivable exaggeration.

Well, if you're just going to pull numbers out of the air.....

[marshmallow]

I hadn't heard that the second part had been spent yet. You claiming it has?

It hasn't. My error was in using the term "spent" loosely. It's been allocated. However, whether the money has been merely allocated or actually spent is irrelevant to the point I was making to Jason who was/is claiming that nobody is helping the banks for fear of populist anger.

My point is that over a trillion dollars (whether allocated or spent) certainly qualifies as "help".

Well, if you're just going to pull numbers out of the air.....

Funds either allocated or spent in current and previous rescue packages amount to over a trillion, no?

[JasonC]

I am.

And ad hominem arguments are the lowest socialist fallacy imaginable.

[marshmallow]

"Ad hominem"?

That's a stretch.

I'm just curious to know whether you really believe this "the banks are fine" shtick you're always selling.

[JasonC]

I do, up to the proviso the idiot populists are still calling way too many shots and can wreck as much as they are allowed to wreck. Therefore, buy the seniors with your principle and the common with your interest and dividends.

I closed on a property January 30. 6 figures. I levered up to do it. That is the only reason I haven't bought the banks to the tune of 5 figures since November - that transaction has been my whole "line". I am deliberately going long with leverage at these prices and terms. By maybe May I could be back in a position to add to financial assets.

In case everybody just forgot, the underlying cause of the whole thing is overvalued real estate and mortgages written against it. I am buying bank owned property in some of the hardest hit, but to my mind beautiful and promising long term, areas of that market. I don't need to flip anything, I can hold it forever.

This too shall pass. And those who are brave today will reap the rewards.

[marshmallow]

Good luck.