[quote=threadkiller]I agree as well. One reason I would buy BAC however is the same reason I would have bought Ford back then, their competition is getting wiped out. The best way to succeed is to have no competition. OT I think it would be possible to have low yielding T bills and inflation at the same time, so I take back everything, just kidding. I got out of stocks a long time ago, too early but that is my achilles heal my timing is horrible.[/quote]
Yeah, I loaded up on BAC as well the other day around $6.50. I do think it should be a good play for the long term. However, you have to go into some of these banks with so much toxic waste with caution. It’s tough to know just how much toxic waste is on their books.
I do think Bank of America is “too big to fail” but in the past I’ve lost money with that failed philosophy. Back before the recession started I made a good bit of money short selling the bond insurers, banks and financial companies.
However, the stupidest investment I ever made was trying to catch the falling knife on Washington Mutual. I figured it was “too big to fail” and I made the horrible mistake of buying a TON of it 2 days before it failed. I ended up losing about $250,000 in a matter of a few days when the government essentially handed it over to Chase.
So you have to go into some of these financial institutions with a lot of toxic waste on their books with caution. I do believe in the end, BAC will be around and thrive but it will take many years.
If you are a trader…then the volatility you are probably loving on BAC. The daily swings the past few days have been dizzying.
