B of A gets the bailout - where do you invest tomorrow

Just over the wires, B of A gets 118 Billion loan guarantee to cover the "assets" it purchased from ML and 20 more billion in TARP funds at an 8% rate. The TARP will also extend the loan maturity from 3 years to 10 years. In return B of A will cut the dividend on the common stock to $.04 per year for the next 3 years.
What does this mean? The bank preferreds look like gold. I was a little worried that the banks might get the AIG/FNM equity haircut, but once again, the treasury came to the rescue. I believe Citi will get another bailout too. Why? Not because the treasury cares about the health of the system, it's because they don't want to look bad. Think about it, if the treasury lets any of these large TARP banks fail, the gov loses its initial investment. The loss will be all over the news for a week, there will be months of congressional hearings. Dylan Ratigan will be screamong "How could you gamble our money" every 30 seconds. Heads will fly. Contrast that with throwing in a little more money from the TARP, give a loan guarantee, then you can get on CNBC and claim you made money on the investment. What would you rather do.

Trades: Citi preferred class P - $10.50 a share, 18% Yield , Citi preferred class M - $11.00 a share, 17.7% yield. B of A convertible preferred class L - $500 a share, 14.5% yield

These are winners, safer than the common, good income and now backstopped by the fed.