NoFate

How to Trade This 'Bear' Market - Barron's

$2 a share ...we finally got MARK TO MARKET!!!

Now the rest of the investment banks have to drop to $2 and we might be at a bottom.

Disagree? Great ...SOLD TO YOU!

BoA Buys Countrywide - Implications for Main Street

I hope there were not taxpayer funded inducements to make it happen. That is called communism, moral hazard, collusion, and a bunch of other even worse words...

BoA Buys Countrywide - Implications for Main Street

"On the other hand, existing homeowners whose mortgages are being serviced by Countrywide should probably be breathing a sigh of relief. No one wants a bankrupt loan servicer, and now they know that isn't a risk any more."

I don't get this either. My home loan is CW ...if they go bankrupt they may not have to pay some creditors, but I'm sure they will still want my monthly payment. If their book of business gets sold off, I'm sure they will tell me where to send my monthly check. Further, they can't call in early payment of home loans even if it is legal and somewhere in the small print ...it would simply stop the income flow and force additional foreclosures.

I am far more worried about the implications say of E*Trade. I transfered a large account out of there last month. If they go bankrupt my investments were fully insured ...but I might not have access to them for months (to trade or withdrawal)! Now that could be painful.

Anyway, if my assessment is wrong, please explain why.

BoA Buys Countrywide - Implications for Main Street

"The combined company will have 25% of all mortgage-origination business: in the UK, that would officially make it a monopoly."

Sorry to be so picky, but this is kind of like calling Bush the 2nd a dictator. He may have exceeded his specified powers (not to mention common sense), but he still has limits to his power.

Similarly, 25% market share is hardly a monopoly. This would be an Oligopoly ...if the others are also large. If they are not, then it is still pure competition.

Countrywide Takeover By BoA Would Make Sense

My concern is that the Fed is involved. If they backstop BofA losses they are bailing out investors with taxpayer money. I don't know what other leverage they might have to try to push this forward. I can't image BofA would be that interested after they already got burned at $18/share. I smell a big fat rat here...

Pick Up Undervalued Financials - Barron's Interview

There has not been a recent deal that didn't dilute stock price. Either there were additional incentives or the stock was just sold below market price. When big players start picking financials at market price with no side deals I might believe its a bottom. They are just trying to stay solvent at the moment.

The other thing to watch is the ARM resets. The worst 6 months just started ...after more foreclosures we will see how bad their mark to model calculations really are. Until then you are bottom fishing in the dark (...don't grab a shark!).

Three words if you believe this article ..."Sold to YOU!"