Once the banks repay TARP and the world adjusts for the sins of the past, the back will start paying dividends again and the share values will move back toward historic levels. Which, in the case of BAC, since 1996 hasn't been below $20, until a short blip in July 2008 and then since November 2008. Bet on death and destruction if you like, but I bought at $7.28 and am planning on $20ish by the end of 09.
Why Bank Nationalization Will Never Happen [View article]
It's just another bubble folks and bubbles pop quickly. Remember Jimmy Carter and 18% interest and home loans where people got excited when they came down to 12%; how about the real estate bubble we are exhaling from now; or the "we'll never see $2.50 gas again and a barrel of oil will go to $200" bubble last summer.
When things are going up the bulls get greedy and stay in too long. However, when things are down the shorts get greedy and egt caught in short squeezes.
I have a suggestion cover your short position. The more people who think they should profit on the backs of small investors and retirement accounts by financial encouraging Armageddon the more I like the bad back scenario.
The advantage the government has is that it can take the bad assets at a reasonable price allowing the good bank to survive and wait to sell those assets when their value improves in 1 to 5 years.
Banking Won't Be Fun for a While [View article]
Why It's Better to Bail Out Borrowers than Banks [View article]
Why Bank Nationalization Will Never Happen [View article]
Why Bank Nationalization Will Never Happen [View article]
When things are going up the bulls get greedy and stay in too long. However, when things are down the shorts get greedy and egt caught in short squeezes.
Bulls and Bears make money and pigs get eaten!
'Bad Bank' Is a Bad Idea [View article]
'Bad Bank' Is a Bad Idea [View article]
The advantage the government has is that it can take the bad assets at a reasonable price allowing the good bank to survive and wait to sell those assets when their value improves in 1 to 5 years.
Short Into the 'Bad Bank' Syndrome [View article]
Bad Bank and Draft Bill Spook CDS Traders and Wall Street [View article]