[quote=flu]In case you haven’t heard, Bank of America is going to borrow $34 billion from Allan, Jpinpb, and I…No problem there…Move along.
Seriously though, I don’t understand how a bank which needs to raise $34 billion would have common stock appreciate by 25%+ on the rumor announcement that it only needed $34 billion. It just boggles my mind.[/quote]
FLU: It’s like an alternate universe. A friend is a pretty senior dude at BofA and another is at Wells Fargo. Both have been told to prepare for the worst, meaning a potential job loss. Both have also been party to the “inside” news and both are completely baffled with all the good news that’s supposedly out here in the market, mainly because it doesn’t square at all with what they’re hearing inside the industry.
Same with all this supposed good news coming out of the housing industry. Sales are brisk, rates are good, multiple offers, etc. Frickin’ bizarre.
It’s like there are two separate realities are work here. One has people out spending money (retail) and buying houses and carrying on as though nothing is wrong and the other has people pinching pennies, preparing for the worst and waiting for the other shoe to drop.
Just plain old weird.
Oh, and I might be a wee bit short on my piece of the BofA deal. Just a few billion or so. Think you or Jp might spot me a coupla bucks?
