Apple and Bank of America…I Love When the Market Makes Sense.

I love the markets. They can’t be tamed. The market is never priced right, but price is always right.

This morning, two stocks are perfectly priced in the big scheme of things. $AAPL is at an all-time high and $bac looks set to implode at yearly lows.

There is NO easier business to run than a bank. I can’t think of a more difficult business to run than Apple. Of course that pisses any normal human being off, but let’s not get all mad for the moment. We will always be mad at bankers and the government. Remember my motto…’Punch a banker, hug a developer’.

The banks borrow money from the government at a low rate and lend money at a higher rate…to the government. That’s genius. In pre-lunatic times, the banks borrowed money from the government and lent it to us at high rates and kept reserves for the inevitable bad debts. To run the day to day, they would nickel and dime us to death and invest some of the money in technology to prevent check kiters and be done with tellers and other ‘people’. Life was good.

Of course the banks have just screwed it up. It’s too easy and boring to print money.

I can’t imagine not being able to invest in markets, knowing what I know. You do not need to have ten years of investing experience to own Apple and avoid Bank of America. If I was running a business television network I would dedicate it to talking about Apple’s of the world and inspiring people to chip away at the Bank of America’s of the world. I would do it 24/7/365 and it would be massively profitable. The ‘Oprah’ channel of business and investing. I started it in 2006 with Wallstrip.

Americans have a bad rap for not voting. I disagree. I just don’t vote for politicians.

I vote everyday in America with my purchases of stock.

My government refuses to listen to the votes. If the government or my elected official, listened to my votes, they would not inject money into Bank of America, they would inject money into new ways of banking and new ways to create more Apple’s and starve Bank of America.

With any injection there would be pain, but the capital would go where it deserves.

Obama has a ton of power to do stuff like this. If he does not, we have a responsibility to make sure he does. I don’t see any other way to fix things other than to continue to vote the way I vote and inspire people when I can and stay ‘Too small to fail’.

23 comments

  1. Vinny says:

    Great Article HL!  Obama has more power than anyone else in the world, unfortunately even if he did do something like you said and give very inexpensive loans to the tech industry and dev shops, Congress would never let it happen.  No one in Washington understands what it takes to write a line of code or what moves an Ipad.  The fact that our country is lead by dinosaurs does not help the position of our economy.

    Cheers,

    Vinny

    •  the economy is made up now of the overall big machine and ua too small to fail guys.  local is the new global so screw the government and get shit done. 

  2. Anonymous says:

    “Punch a banker, hug a developer”  a classic  put it on a shirt…….O’Lindzon ..you even have your own Dr. Phil …

  3. Ataraxia101 says:

    Howard
    With your network, am sure you have access to do a one on one with Obama. Why dont you seek a one on one with him?

    I genuinely believe that he has a desire to do something – i dont think he is getting the right counsel. He is surrounded by academicians, economists and pseudo business types.

    It is high time some trader like you sit down with him, man….

  4. CongKiller 1967-69 says:

    Re , to get really angery see   “As a Watchdog  Starves, Wall Street is Tossed a Bone,”  the role of Scott Garrett of NJ and Spencer Bauchus of Alabama in cutting funding for the SEC. 

  5. Techinsidr says:

    Well said Howard….  It doesn’t always happen, but its great when the markets function correctly and BAC / AAPL is a great example. 

    At the heart of the stock market market, it’s a complex reward and punishment system. In the long run, the market tends rewards innovation and punishes mediocrity… as you can see from the 1yr chart for BAC/AAPL: http://stk.ly/ozVQFD

  6. Robert Sinn says:

    Perfect post Howard, you are so right on so many levels. So many great quotes in this writing but my favorite is  “The market is never priced right, but price is always right.”

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  8. Anonymous says:

    This might be the best post I have read on this blog since I started reading it in 2008. You nailed it. (No, I am not a relative nor am I trying to kiss his butt). Good job.

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