Got to go the Wayback Machine all the way to Wednesday after the close. Love was in the air. Bank on Bank love, lmao. Embiggened (yeah, that's a word) by their sudden ability to borrow funds at the Discount window at rates way higher than they get normally, BAC plunks down some of that cash at Countrywide. CFC trades up from 21.80 on the close to $26.50 or so.
Voldemort has this nugget.That's what happens when the Fed lets you survive. You thrive. This is the change in psychology that I keep talking about.
It just infected BAC. And it will infect others shortly, which is why this market is the most dangerous short I have seen in ages. Oh, and look at the short position in CFC; it is out of control. Just try to get out of that exit tomorrow!
Yeah, it opened back in the mid 23's and closed near flat. Oh, the Humanity!
Fast forward to
this morning.By now it is clear to everyone that Bank of America (BAC) got the best of Countrywide Financial (CFC) in this deal, and why not? I believe that Bank of America is on the hook to Countrywide for a lot of loan money.
Yes, very clear.
OK, obviously the euphoria for CFC was misplaced. But if BAC fleeced them as everyone seems to think, shouldn't BAC act better? It's unch. since the deal. CFC acting poorly can be explained away if you say they gave away the store at the bottom. But if that's the case, shouldn't BAC getting in the door so well be very bullish, for BAC?
That can't be the greatest sign in the world. Maybe
The Call will enlighten us right now, with Becky Quick and Trish Regan.