Countrywide Takeunder is Creating a Crash Scenario…CONFIDENCE

With homebuilders on the brink and a massive takeunder by Bank of America of CountryWide, we are truly in a crash situation.

The takeunder says that Countrywide is indeed busted and the B of A dabble with Countrywide at $20 was a huge blunder.

That is enough to shatter the confidence of a lot of people who push buttons on money.

I am adding some SPY and QQQQ back down here with the Dow back down 280. I am not thrilled about the purchases and am looking at crash put ideas as we speak. If it ain’t buttoned down, the market may take it away from you next week.

I am glad to have honored my stops in the 20 or so stocks I have stopped out of in the last 30 days. They have been pounded relentlessly since. My trading has been good, but a small mistake now could be costly so you need to be extra cautious.

3 comments

  1. JimK says:

    The intensified bankruptcy rumors earlier in the week were likely true as this has the look of a shotgun bailout with BAC overpaying by $4 bln. It was interesting that last year CFC changed its structure to thrift and now about 9 months later the agreement to become part of BAC.

    Odd to that BAC says its profitability will eventually be enhanced by this purchase.

    The deal was valued at $4 as of Thursday’s close, but already CFC is trading at a discount to the share ratio of BAC’s buyout.

    As more folks do the dot connecting, you’re right… CONFIDENCE will fall further.

  2. EricC says:

    Consider how much BAC is going to save in taxes carrying Countrywide’s losses forward. Those losses must be staggering.

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