Bank of America Needs More of Your Tax Dollars

by: Trader Mark December 01, 2008 | about stocks: BAC / SKF    
Trader Mark

Trader Mark

About this author:
Become a Contributor Submit an Article
  • Font Size:
  • Print

Full disclosure - I'd be short Bank of America (BAC) here, with stop loss over that 20 day moving average (aka north of $16.50s or so) - I'd use a 4% stake or so.

I'd be short until the US government uses my own money [Nov 24: Details on Citigroup Bailout] to blast myself out of my position, using my own taxes to cause egregious losses to myself when they bailout BAC. That's how socialism works. (Or, I'd stick around with a target of $7-$10 if that comes before the government uses my own money against me.)

Hi, my name is Bank of America - aka Citigroup 2.0 [Nov 26: After Citigroup is Bank of America Next?] Now who wants some of these yummy Countrywide loans? Anyone? Will someone else other than Uncle Hank raise their hand? Please... anyone but Hank... please.

In the interim I have to use Ultrashort Financials (SKF) as our proxy

Disclosure: Long Ultrashort Financial in fund and personal account

Related Articles

This article has 4 comments:

  •  
    Dec 01 07:48 PM
    A nice pairs trade is long KRE (regional banks) versus XLF. KRE means less toxic debt. Very clear widening spread for the last 6 months.
    Reply | Link to Comment
  •  
    Dec 01 08:14 PM
    What happens if BAC shareholders vetoes the merger with BAC? MER is as sick as C and will need life support.
    Reply | Link to Comment
  •  
    Dec 01 09:21 PM
    BAC was up over 50% last week in light volume and stopped Friday just shy of the 20 day MA. I bought some DEC $15.00 PUTS friday and watched them go from $1.40 where I bought them to over $3.00 in one day! Too bad I sold them for a quick profit this morning, oh well.

    There will be more opportunities to go short for this one.
    Reply | Link to Comment
  •  
    Dec 01 09:27 PM
    Ken will get MER and also 50% of Black Rock for $17-$20B not bad...Shorts thoughts KEN overpaid...LOL
    with $50B LOL

    They don't understand nothing...

    BAC and MER is a SWAP deal at 0.8595 ratio

    NOW BAC is $12.85 and MER is $10.13 with 1.6B shares this mean that the deal will be much below $50B but more like $17-$20B and Ken will get them about same price JPM got WAMU and Bear stearns

    Don't forget we did not got $30B from FED to get MER like JPM with BEAR STEARNS..just wondering why?? LOL

    But for countrywide we got it cheap with a $5B taxes credit....and this give BAC a 12% of US depot...25% of US lending....and #1 in the world for wealth management....

    Keep shorting.....i'm adding..up....LOL
    Reply | Link to Comment
More Comments on BAC ยป
Top Rated Comment Streams:

Numbers are net rating-

See all Top 100 »
More by Trader Mark

Investment Resources
Money Management
Research
Seeking Alpha provides these ads as a service to its leading contributors
Articles on related themes
Short Ideas
Major & Intl. Banks
Consumer Credit
Insurance