NEW TECHNOLOGY

Superstrategist Andy Bush of BMO Capital Markets is very funny today:

Note To Congress: Go for it! Tell any new bank that's taking additional TARP money that they can't redo their offices, that they can't sponsor a baseball park, that they can't pay their executives bonuses, that they have to lend to people with bad credit, and that they have to break contracts for mortgages to extend terms.

Note To Market: Sell any bank or financial institution that agrees to these terms and takes TARP money. If Congress forces banks to take this deal, sell XLF hard. Zero is an option. Apparently, we have to wait until the stimulus plan gets passed before the Obama administration will bring up their solution to the banking system. I think this sector will remain under pressure due to the uncertainty not only of their toxic assets, but also the possibility that the new plan will close down/merge banks under duress with healthy banks. Watch for the trial balloons...