Replies to post #2131 on Bank of America Corp (BAC)

[mehedi]

Wrong. Actually this administration cares and thats the first is many many years. What Geithner did was in a way perfect, Lets see what happens; that was I think a part of the stress test. You are not going to get answers like everything is honky dori like what you heard from the old admin(Uhh!) They will tell you how it is and weigh all situations before doing the right thing by the people and by the people also means share holders. Wall street and economy is the same thing; whatever happens to wall street happens to the real world 4-6months after.

[cal_pn]

Stock prices can only reflect the real value of the respective company in the long run and stock prices rise when the value of the company increases (this has been accepted over decades as a general investment strategy illustrated by the success of Warren Buffet who always tried to invest in corporate value).

The last couple of years some people made us believe (or even themselves believed) that value can be created by pure speculation, essentially because others will follow and pay for it. The result was that few got rich but many more ended (or will end soon) in the dust. You can not seriously run an economy on such principles. This is what needs to be fixed now.

BAC will rise again when people realize that buying this stock means buying future value (cash flows and profits not only artifical stock price fluctuation)

The only essential difference between stocktrading and gambling is that stocks are traded for future value, not for pure anticipation of an event happening in the future.