Bac

Back in short, Dick Bove is tard

 

Owning it on the cheap is a good thing I agree but it for BAC to ever see $30 again the Dow will have crossed 40,000......

 

Lewis is gone. Just a matter of when.

Talk about doubling down and throwing good money after bad.

 

Wanna have a bet? IF BAC isn't 0 or nationalized, that is, in 2 years time, it will above $30/share FOR sure... And Dow won't need to be above 15000 for that to happen.

 

It could very easily not be 0 and not be 30. See FRE FNM AIG for reference. Zombies

 

They made him buy it.

The endgame will be

JPC Bank Sachs how can I help you?

 

Half of all deposits in the USA are w/ BAC.

more than 2/3 households deal w/ BAC.

BAC has had the Treasury and FED over a barrell since August 07.

Ummm FDIC has not enough assets to cover a good size regional let alone BAC. Figuring on the demise of BAC is fantasy. This is different than the foolish game Paulson played w/ FNM, FRE (Holy F**** what was he thinking on LEH?). That was severely wrong and so too would be ruining markets once again. Paulson's nationalization caused need for the TARP. There are no capital markets to turn to when banks are forced to borrow at 16% on the preferred market or 10% on the senior debt market. Bill Gross is right to buy up all this stuff.

Lewis could be gone because he dropped 50B on MER. That's his biggest stupidism and the only problem. Diamond has won the poker tournament but his assets aren't as good.

The credit spread on the BAC debt is an anomaly and should be seized upon as better than treasury debt (Read Bill Gross).

The stock is an awesome option on America w/ no expiration.

All this talk about the stock moving to zero or to 30 has been accompanied by no real information whatsoever.

A suspension of stupid accounting will bolster the economy much faster than anyone is predicting. When there is a financial Earthquake there is no logic behind not evacuating people because their houses weren't built to code. You evacuate the fools and let them put up new houses later.

Then, stop letting fools book profits on unsubstantiated gains or take losses on them, too. It's going to work both ways AFTER everyone has come to JESUS.


*edited because I used a wrong "too"

 

With BAC they get CFC countrywide. They get an option onthe common. If they invest into these banks and get common they will be the biggest winners overall. They can own the stock under 10 which when it goes to 50 in a few years it increases their pot 5 fold.

Buy with the Govt and you will win. They don't play to lose. 200 billion invested into BAC- 50 Billion into the Autos. At three times their return with a simple 6 to twenty run they make a trillion dollars and guess what we are in profits.

At the end of the day we buy oil at $40 and when it goes back to 150.00 we have enough reserves to sell it on the open markets.

Real Estate will rise again and when it does it will be in the hands of families not flippers. Neighborhoods will be stable again with decent people who you know for years. America is the greatest country in the world and we are proving it everyday.
This is the change that we hoped for.... Just give every American a fighting chance and we will rise. THE BANK of America will be victorius in the end. They got duped by MER but I think when the smoke clears they will be the winners.

Would a Rose by any other name smell as sweet?
Ken Lewis got shafted but if he is the man I believe he is then he can turn it away. He needs to let the MER executives who want to leave go and hire some young HArvard, Yale MBAs to run the new economy bank. Its time for old minds to unite with young bodies.

BAC 4-8 trading range could be possible. Its the greatest trading market in history... Only for the ELITE....LOL...

 

From Merrill´s research team ( 26th Jan 2008 ) :

Not your father’s recession, but maybe your grandfather’s

In our marketing tour through Europe last week, we brought along our new chart
package entitled “Not your father’s recession, but maybe your grandfather’s”.
Looking at the youthful demographics that characterize today’s money management
industry, we should have probably gone with “great-grandfather’s” instead.

How is a depression defined?

It shouldn’t come as any big surprise that with such a provocative title, we would
be saddled with questions as to how an economic depression is even defined. Of
course, most portfolio managers still don’t know that a recession is not defined as
back-to-back quarters of negative real GDP prints (which we had neither in 2002
nor 2008) but instead the timing of the peaks in real sales activity, employment,
industrial production and organic personal income growth.

We are likely enduring a depression today

As for depressions, there is no official definition, except to say that they have
existed in the past. There were no fewer than four in the nineteenth century, one
in the twentieth century, and we are very likely enduring another one today.
Though this current one is muted by the fact that most countries have an
elaborate social safety net (deposit insurance, unemployment benefits, welfare,
and socialized health care)

Depressions can last anywhere from three to seven years

Depressions are basically long recessions – they can last anywhere from three to
seven years, while historically cyclical recessions last 18 months – and tend to
follow years of leveraged prosperity of Gatsby-like proportions. Considering that
in this most recent leveraged cycle from 2002-07, we reached a point where a
record 40% of corporate profits were derived from financial activities, where
household debt relative to income and assets surged to unprecedented levels and
the personal savings rate briefly went negative at the height of the housing
bubble, it is safe to say the down-cycle we are currently experiencing did indeed
follow a classic elongated period of leveraged prosperity. It is now reverting to the
mean.

 

Up close to $7. Still holding my position. Got tight stops on the downside.

Hedging it with a small position in FAZ.