No One Cares About Bank of America

By iamned - Last updated: Wednesday, May 6, 2009 - Save & Share - 3 Comments

Last night the US stock futures were lower on reports that Bank of America needed more money than anticipated following the so called ’stress test’. The total came to $35 billion. Instinctively I knew this would not be a big deal because when the fed is printing trillions, an additional $35 billion is peanuts. $35 billion is just four percent of the $700+ billion Emergency Economic Stabilization Act of 2008. It’s not like the fed has their hands tied. If Bank of America needs another $35 billion they WILL get it. And presto-problem fixed!

Last night doom and gloomers were quivering with excitement that this story would be the catalyst for a major selloff, but instead it was merely a bump in the road. Poor losers actually thought this would be the next shoe to drop.

I took this screenshot at around 8:00 PM last night, which shows the futures being lower. I knew the selling would only be temporary, and lo and behold it was. When you’re the third wisest human in the world you eventually get used to being right all of the time. I know how the stock market works.

g

Since I’m feeling felicitous cue the chill-out music

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3 Responses to “No One Cares About Bank of America”

Comment from Lee Lucas
Time May 6, 2009 at 9:55 pm

Well, actually the shareholders do..There unfortuntely is no “presto”, since the quick influx of perhaps more government money does nothing to resolve the core banking issue, kind of like putting a band aid on a broken arm.
Im surprised you seem to only pay attention and focus on micro economic issues, yet cant see the larger macro economic issues that auger for real cautious analysis regarding the stockmarket, not your flip, “see what I beleive’ pseudo analysis. Such a youngster, you havent been around long enough to have the proper context as you view the market and analyze it. When youve got some real skin in the game you may become a bit less carefree in your comments
Yours truly, The second most intelligent person in the universe LOL

Comment from Ray Antoky
Time May 6, 2009 at 10:35 pm

Hey Cetin,
You need for the seeking alpha braintrust folks to give you a lot more respect. I started following you after your article promising a return to dow 12-14k in 2-3 yrs.
So far all your calls have been on the money. This market
seems to be like no other. What transpired today with the financials took me by surprise. I’ve been holding XLF, the financial ETF for a couple of months. It’s been holding up pretty well, up almost 8% today. Cramer says the fix is in for the banks through their friends at the FED. Just what you have been saying. Keep up the positive outlook. Those seeking alpha bears are getting under my skin. Are there any left?
:-) Ray, in Brooklyn

Comment from Administrator
Time May 15, 2009 at 7:01 pm

Thanks. I try to present an alternative view.

———————-
So far all your calls have been on the money. This market
seems to be like no other. What transpired today with the financials took me by surprise. I’ve been holding XLF, the financial ETF for a couple of months. It’s been holding up pretty well, up almost 8% today. Cramer says the fix is in for the banks through their friends at the FED. Just what you have been saying. Keep up the positive outlook. Those seeking alpha bears are getting under my skin. Are there any left?

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