"Most of the government 's proposed changes for the financial markets aren't new or needed; but what will happen will be a boost for some and a bane for others," says Neil George.

Long-known in the newsletter community for his expertise in income investing, the advisor has just launched a new blog service, Stocks that Pay You. Here, he looks at some winners and losers from the current proposals for financial regulation.

George says, "In my view, these supposedly massive changes amount to window dressing. Banks and other related firms can continue to do what they've always done: cherry pick regulators and play off one regulator against another.

"So, unless we get the government actually empowering the guys down the line inside all of these agencies and departments, don't look for any big changes, because - while the players and the names might be changing - the contest is staying the same.

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.