This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"Right now we need to start doing what Uncle Sam is doing -- buying preferred shares of solid banks," says Neil George in By George. Here's a look at First Banks 8.15% preferred A (NYSE: FBS-A).
"The major response to the credit and market bubble's popping is of course the Troubled Asset Relief Program, or TARP.
"The legislation authorizes the U.S. Treasury to be able to spend taxpayer funds on pretty much anything deemed to be helpful at getting the economy and markets working again.
"Over the coming years -- hundreds of billions of dollars have been allocated with more available initially and ostensibly to buy up troubled loans and other credit assets of banks.
"That was the plan -- but as it's been put to work after Congress authorized it -- the Treasury has begun to buy not troubled loans -- but ownership interests in banks as well as now insurance companies and other financials.
Closing Bell: Dubai sends jitters throughout the market (S, BBY)
Heinz looking good after the second quarter?
Why isn't Bank of America updating its shareholders on CEO situation?
