We posed the exact same theory after the Citigroup (C) bailout was announced. Good to see realism and cynicism reach into our news agencies ;) That Countrywide Financial exposure cannot be a good thing. I am also wondering if the Merrill Lynch (MER) deal is still going to go through - certainly the terms are prone to change.

I'd be short until the US government uses my own money (Nov 24: Details on Citigroup Bailout) to blast myself out of my position, using my own taxes to cause egregious losses to myself when they bailout BAC. That's how socialism works. (Or, I'd stick around with a target of $7-$10 if that comes before the government uses my own money against me.)

Hi, my name is Bank of America - aka Citigroup 2.0 (Nov 26: After Citigroup is Bank of America Next?) Now who wants some of these yummy Countrywide loans? Anyone? Will someone else other than Uncle Hank raise their hand? Please... anyone but Hank... please.

Again, just nationalize the system... we're already there - we're just playing a charade of "free markets" right now.