I agree. I have been too bearish into the recent rally. I have been concerned about the trivial write-offs and more concerned about the side deals that are designed to ensure companies live on, even though they may continue to bleed hemorrhage.

So what if Bank of America (BAC) is re-evaluating the “promise” to back to Countrywide Financial (CFC) debt? Push the shares higher I say, as it is a clear sign that Countrywide has a greater chance of backing out of the deal and the share price cap is now removed. Don’t worry that it may actually have a tough time with staying solvent absent Bank of America. Why? The FED will surely step in to help Countrywide if it falters.

Credit Card companies colluding? Push em’ higher! (Capital One (COF), American Express (AXP), Visa (V), Mastercard (MA).)

Companies issuing shares or accepting much needed infusions? Push em’ higher! Push em’ higher up! (Citigroup (C), Wachovia (WB), National City Corp (NCC).)

Be right back, need to finish my shock treatment session.

Andrew Horowitz

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This article has 13 comments:

  •  
    May 04 08:17 AM
    The Fed actions on Friday are beginning to scare me, just how bad are we as far as liquity is concerned when they are willing to take car loans as collateral
  •  
    May 04 09:42 AM
    you can add student loans to that now too (as per mish on his site)

    fine w/me 'long as the fed'll take my old car and books (i don't want) and coins (that have "irrationally dropped in value") for their peak values (to return when the markets normalize) in exchange for treasuries
  •  
    May 04 09:55 AM
    Overdone bearishness has become the herd mentality. I am long and going longer. Abelson at Barrons is an example of a permabear who never makes money. Time for bears to consider hibernation.
  •  
    May 04 09:59 AM
    The one stock mentioned that has the best potential going forward is Visa (V)- expect to see $100. by the end of this quarter.

    The second- is Mastercard (MA)

  •  
    May 04 03:07 PM
    H20- Now you know why I'm moving to Brazil............

    I feel America has 3 years left until one of two things happen:

    1. The devilcrats tax us to death or
    2. Our country goes into a tailspin so great it will make the credit crisis look like a bad hair day

    As someone whose family has been in this country for 200 years- it pains me to see the demented group of people running for office- as we essentially have three liberals running for office...........

    I visited 20 countries in the last five years and decided on Brazil- the southern part (Santa Catarina ) is 8million European Brazilians- and is my Destiny............ I even married a Brazilian to get me a green card :-)
  •  
    May 04 04:47 PM
    Hey V- sounds like a "Winner" ! I have a friend in Costa Rica, but property values went up there way too high, if I'm going to retire overseas, gotta have cheap housing and health care. Best of luck!
    (Me hablo Espanol poquito pero bastante bien, so creo mucho de este situation tambien.)
  •  
    May 04 05:10 PM
    Theres 3 ways for the Fed to make money to pay their bills either beg, borrow, or steal. The've done all three
  •  
    May 05 01:08 AM
    Looking at the following for Monday, all the big boys will take a break and consolidate (GOOG, AAPL, BIDU, RIMM, V, MA) its only healthy... now we have the MSFT YHOO saga...

    www.investorslive.com/.../
  •  
    May 05 05:10 AM
    I am afraid the author's article reads like a case of sour grapes - is he actually upset that a major financial crisis was averted, and that in response the financial sector is up 25% or so? Maybe he wishes he had advised his clients to do so and would like another opportunity?
  •  
    May 05 05:54 AM
    Interesting thoughts here. Good points.
  •  
    May 05 10:51 AM
    The author is upset that so many can't see the trouble we are all in. The folks with the strength to get ready to write off the IOUSA are on the correct path to protecting their ass by living elsewhere. Long financials..... no way! It is put time!
  •  
    May 06 03:16 PM
    The author is rightfully upset due to the irrational exhuberance of the markets. There is a collusion not to let this market drop. Everything is pointing to financial/economic armageddon but in Wall Street no one is paying attention. Get 'em up...get 'em up.
    The Fed is going to exchange everything for t-bills which are backed up by a bankrupted Government with a fantastic printing press. I'm living in Chile already. I live by the river...
  •  
    May 07 02:21 AM
    pavlov- what the owner is upset about is that instead of trading stocks- and making money- he has to write about those of us with the testicular fortitude to do so- we are not in a recession as the facts keep dictating........ in the end you will see that we slowed down but didn't contract. I can't be made at doubters for I am making profit buying stocks at a discount while your money sits on the sideline.keep on waitin.......
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