DSX Lover

Is Bank of America Rethinking Countrywide's Value?

BofA can always do the MSFT Yahoo, walk away.
And like JPM, buy CFC for pennies, since no one will be willing to buy it for more. And let Helicopter Ben finance the transaction for free to take on the systematic risk.

The Worst Is Behind Us (unless massive bank failure is considered a bad thing)

Banks are BUY BUY BUY BUY at these levels.
Shorting these things at these levels is asking for a serious BOOT STUMP. And the worst is truly over. The more capital they raise these low levels the easier takeover for the Giants (JPM,BAC,HBC) when the cloud clears.

Financial Stocks Trading Near Book Value

Never compare a Bank's Book Value with a Broker's book value. Its a totally different animal. Broker's are leveraged up to the WAAAZZZZOOOO almost as twice as Commercial Banks. Therefore look for higher fluctuations in the. In the other hand, the Book Value of the banks, is less volatile, along with the assets it holds. Banks are less subject to leverages than brokers, therefore less risky, and more stable. The business model of banks is more stable too, you can't predict what dislocations in credit securities will do to Brokers, because they are more leveraged, and because they don't have a stable depositor base like the banks, who will always have an insight on the cost of funds, and don't have to worry about MARGIN CALLS.