Replies to post #1944 on Bank of America Corp (BAC)

[h2omd0]

I just do not see nationalizing any of the banks.
If the government takes one, they would need to take them all.
That; they just will not do.
The government likes to take tax money, in every way they can.
But to nationalize a bank, and give nothing to those who own the bank, goes against everything we believe in this country.
I could see a bankruptcy, and assets bought from the banks.
Maybe even the government buying some of those assets.
I hear nothing from the administration about nationalizing. Nothing.
Bank of America was picked by the Bush administration to take ML and they were loaned the money to do so, at that time Bank of America must have looked good to someone. They did make a payment on the loan. I am not sure if any other bank has but Bank of America did.
I look for a take over attempt of citi bank, It is looking to me like a good candidate for a take over, but not nationalized.
Bad assets get sold everyday in every business, these assets will sell, and when the bidding starts it will go up,
bidding always goes up.
I have never went to a sale where the bidding goes down.
There is tons of money on the side lines right now, I am sure most of us are holding back.
The market is 7k one half what it was.
When the bidding starts, and the bottom has been established.
The market will run and run fast. No one is interested in a 1% 20 year CD. The banks are fat and getting fatter as the money comes out of the market.
IMHO buying until end of July should be good, after that I think there will be a price to pay for not being in.
Changes can happen, but that is how I see it right now.
Now back to my reading.

[Rock_nj]

If Bank of America is not nationalised, then the stock is going back above $40 evenutally, at least. Initially it will go to the $10 range and trade there for a while until this mess gets sorted out, but with the Merrill Lynch and Countrywide franchises, BAC is going back up big when the economy improves. Just wait until IPOs start happening again and Merrill Lynch starts raking in the revenues from the IPO deals. All in all 2009 could be a good year for BAC. They just need to get past this rough spot.

Apparently, next week U.S. Treasury is going to lay out their aggregator bank plan to take over the bad assets and BAC and C with public/private funds. Treasury wants to end this bank nationalization scare.

[enlightened1]

Further to my earlier post. Don't get too hung up on the word
'Nationalization'. It can come in different forms. The ruling establishment has a penchant for dreaming up euphemisms to hide the truth, and reality.

Of one thing I feel certain, they will be very careful what they do, or at least, how they do it, with ' Bank of America.' That very name is far too important psychologically for the esteem of the US (and it has so little left to lose).

However, 'The Bank of England' is a nationalized institution, as many other central banks are. Bank of America could become THE BANK OF AMERICA.

How the US's neighbour does it. The Bank of Canada

"The Bank is not a government department as it performs its activities at arm's-length from the government; it is a Crown corporation owned by the Government (shares are directly held by the Ministry of Finance). The Governor and Senior Deputy Governor are appointed by the Bank's Board of Directors. The Deputy Minister of Finance sits on the Board of Directors but does not have a vote.

The Bank submits its spending to the Board of Directors, while federal departments submit their spending estimates to the Treasury Board. Its employees are regulated by the Bank and not the federal public service agencies. Its books are audited by external auditors who are appointed by Cabinet on the recommendation of the Minister of Finance, not by the Auditor General of Canada."

You see. It's neither one nor the other. It's a mixture. But it is OWNED by the government. However, it avoids the word 'Nationalized'.

They are many strong possibilities, if perhaps not exactly probabilities - yet, that could still see us ripped off.

What I am alerting you too is simply LISTEN CAREFULLY to the words used when you get these comments, especially in the form of reassurances. Do not get hung up on the word 'nationalization', and we don't believe in it being the way to go.

They could honestly say they don't believe in war is a way to go - but they still do it.

Fingers crossed, and hope for the best. Stay positive, but cautious.

I do not think we have long to wait as they cannot stand the present uncertainty continuing. The banking system is the key to recovery, and bringing some stability, and hope, to the world economies.

Money, today, is the blood bank to life as we know it.

Happy Days to all