chtrplyr

Countrywide: Potential Short Squeeze in the Offing

CFC shorts would have to be committing financial suicide to hold a position through the merger.

BofA had $15B current provisions plus $13B positive net equity in CFC plus potential $7B reserves this quarter for $35 Billion total.

All the while remaining profitable.

That will more than cover the balance needed to cover losses even in poor economic conditions the next few years.

With the housing bill they will only have about a quarter of those losses and will book write ups.

This is a negativity and oil bubble that is going to burst. BofA will help that happen after they book CFC as the lower the BofA price right now the lower they book for CFC for.

Shorting CFC at this level is about the dumbest move possible.