"I think we saw lots of signs last week of capitulation -- that's what we need to clear this out -- I imagine we have to test those lows, but, absent three more names we know well disappearing, I think we've seen the lion's share of the downturn."
Of course, a major consideration is the bailout package being negotiated in Congress, he noted. And it's important for investors to know what the bailout does and doesn't do.
"This does not put a floor under housing prices," Doll said. "This does not prop up a weak economy. It's just a mechanism to create some liquidity, and, in doing so, to restore some confidence."
"I think we have to be thankful we have a guy like Hank Paulson sitting in that chair. He knows markets, he knows the players, he's reaching out, he's not a guy grabbing for power; he's trying to come up with some things that are going to make a difference in the middle of a crisis."
On Treasury bills going to zero, Doll said:
"We got down to 50 basis points in March; many of us thought that was ringing a bell, but, of course, we've now gone to zero. The other side of that trade is when you're desperate for owning safety, you're desperate to get out of risky things, and that's generally closer to a bottom, not a top, in risk assets."
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