In case you haven’t read the news, the TALF is now basically open for business.

The TALF is the Fed and Treasuries “stimulus” program for the financial economy. It’s far more important, in the financial world, than Obama’s stimulus plan for the production economy. The amount of money to be poured into the TALF is enormous (plan is for $2 trillion, I believe) and sure to grow larger with time.

As is evident from even a cursory reading of the TALF, the program, which provides non-recourse loans (i.e. free money) to private funds, will engineer gigantic, essentially risk-free, profits for a handful of politically-connected financial firms, and other financially-related businesses.

Moreover, as the TALF is expanded in due time to nearly every securitization market (it’s limited now to only certain types of assets), additional large profits will be generated by private funds.

At some point this newly created capital will find its way into the stock market, keeping a floor under the market and I believe ultimately leading to a sustained recovery (at least for a short while).

So, I think, with the arrival of the TALF, the time for bearish sentiment is near its end and many beaten down stocks could jump significantly in the months ahead.