Tuesday, October 19, 2010

Bank of America = Enron Redux

Pimpco and the NY Fed, among others, the NY Fed being the key piece to this, are now demanding that BAC buy back $47 billion in bad mortgages.  Here's the news link:  BAC: Look out belowwwww

It is likely that to the extent the Government and the Federal Reserve Bank decide to monetize this mortgage catastrophe, they will have to use Bank of America - seemingly the worst offender - as the "fall-guy."  We know that Tim Geithner has a track record of not only not paying personal taxes, but rubber stamping the use of taxpayer money to bailout the fraudulent banking system.  It is likely that is why he has not been sacked yet from the Treasury Office.  They need a dope like him to sign the paperwork.

My advice:  if you personally own any Bank of America stock, just get rid of it.  If you are invested in a mutual fund that owns a large stake in BAC, get rid of that mutual fund.  The fund manager is an idiot.  Here are the largest fund complexes that own BAC stock:  State Street, Vanguard, Barclays, Fidelity, JP Morgan, T Rowe Price, Axa, Bank of NY, Northern Trust, Janus.

Janus really raises my red flag because over the last 10 years Janus has a near perfect track record of having outsized positions in the biggest landmines of the decade.  Hey - in the stock market - where there's smoke, there's a nuclear financial meltdown in process.  Here' a link to the complete list of holders:  LINK


  1. Dave, What's a good price to get into gold and silver contracts on this pullback?

    Ricky T

  2. did BAC announce falsified earnings yet?

  3. Anonymous, look at a chart and pick some spots and leg in 25/25/25/25%. Or 1/3, 1/3, 1/3. The best you can hope to do is starting buying in and have gunpowder with which to average down.

    I'm sure this correction will go deeper than I'm expecting and last longer, but who knows.

  4. Paulson & Co. "Recovery" Fund's two largest holdings: C, BAC; also owns sizeable chunks WFC and JPM.


  5. good plan dave. ill use yi and yg mini contracts

  6. But... but... but...
    CNBS said to BUY IT!! (LOL)

    You should probably be a buyer of Bank of America right now
    I never thought I’d find myself typing those words. I’ve been a huge critic of Bank of America for years. I'm bearish on the financial supermarket model. I don't think the acquisition of Merrill Lynch is working out. I still don't understand the logic of buying Countrywide.

    But Bank of America's recent decline—down almost 10% this week—is driven by fears that the bank could be hit with huge liabilities for faulty mortgage pools. And I’m pretty sure that is not going to happen. BWAHAHAHAHA

  7. Good analysis going on over on the Kitco boards regarding junior miners and specifically the silvers.


    It's so hard to decide on which ones to go with-I like some of your picks too Dave.

  8. best description of the US foreclosure problem:


    and a real life example:


  9. Sprott gets licence to obtain silver..