In a post we published last August 23rd in the wake of a $2 billion purchase of a specially issued class of Countrywide stock by Bank of America, we penned a piece entitled: "Now that Bank of America has Rescued Countrywide, Who Will Rescue Bank of America?" At that time, the media was filled with recountings of FED, Treasury, and Wall Street assurances that the credit crisis was well in hand, the worst was over, etc etc.
At the time we posed our very serious warning, Countrywide stock was selling in the mid-20s. Yesterday, the stock closed at 5.47. A nice 80% decline.
Bank of America stock was going for about 50 bucks on August 23rd. Yesterday it closed at 38.41. This constitutes a nearly 25% decline. This is hardly small potatoes for a blue chip mega-bank, the largest bank in America and a supposed cornerstone for conservative portfolios.
And now?
We remain bearish.
