I'm not a very close follower of the stock markets, but wow, Bank of America stock is up almost 11% this morning! This is huge news because yesterday, the damn thing looked ready to bankrupt - that's how poor investor outlook was on the U.S. economy.
I think at some point yesterday, BAC stock was trading at less than its cash on hand. That basically means that for every $1 of stock you bought, you were holding a company with more than $1 in cash. That doesn't even include any of its buildings, and its receivables, or its businesses... All of which would increase its intrinsic value!
Anyway, this morning we're seeing a lot higher investor confidence, with the VIX index of volatility down 4%. Everything is looking at the strong Durable Goods order report for July and home prices - both better than expected. We're also seeing a lot of positive hope for the Federal Reserve speech on Friday.
Glad to hear things are changing for the better.
ReplyDeleteBank of American is up from its low of $6.00 but nowhere its 52 week high of $15.00.
ReplyDeleteThey expect to lower expenses by 20%, with significant layoffs, which is why the stock price rose.
They have close to a trillion dollar loan problem.
So, good for the shareholders but I feel sorry for the thousands who will be laid off. It is hard to find employment with the current 9.1% unemployment rate.
Yes, volitility is down because of a general business malaise.
Durable goods orders are welcome good news, autos, aircraft sales did increase.
Don't mind us, just trying to figure out our intractable consumer society and shit fiscal policy.
ReplyDeleteIt's good to hear that things arent looking that grim.
ReplyDeleteThat's great!
ReplyDeleteCheck out my blog at artofthefighter.blogspot.com
Yeah I saw the news on tv this morning
ReplyDeleteIt's good if prices are going up, but I really thought the first rule of the stock market is "Buy low, sell high". Can't help but think if people were doing that now, the stocks would improve because everyone was buying them.
ReplyDeleteBank executives are crooks.
ReplyDeletei'm totally clueless whenit comes to stock market and money talk might be why i'm broke
ReplyDeleteI guess this won't last long enough.
ReplyDeleteSaw it on the news, very nice
ReplyDeleteHaha I envy the people who had their stocks invested into the bank of america, good day for them!
ReplyDeleteKinda bittersweet when big evil companies do well... although I bank with them so that makes me a bit of a hypocrite.
ReplyDeleteinteresante entrada
ReplyDeleteHoorah! Something positive about the economy! I could hug you right now, i'm so sick of reading miserable headlines.
ReplyDeletejust like scratch cards imo.
ReplyDeleteNow we'll see when it flops next!
ReplyDeletefor someone who doesn't follow it closely, you seem to know a lot
ReplyDeletehehe
ReplyDeleteWell, i think this is just a little improvement. BoA might eventually go out of business.
ReplyDelete/Very/ nice increase...
ReplyDeleteI blame the earthquakes.......
ReplyDeleteJessi, so I've got a fair amount of cash on deposit with bofa, where should I put my cash now? BofA used to have great service, I've been banking with them for 25 years, where should I go, really asking for advice here.
ReplyDeletethis affect us directly as well (Mexico)
ReplyDeleteHopefully the economy will be back on its feet soon
ReplyDeleteI'm a bit afraid of doing any stock trading at the moment.. Even though I'm a daytrader it's feels far too unsafe on the market right now
ReplyDeletethe stock market is so jumpy!
ReplyDeleteNothing is going to get better until they stop printing and borrowing money.
ReplyDeleteI've actually been doing back flips all morning because I own BofA stock.
ReplyDeleteYeah Warren Buffet puts billions in bank of America I hope the stock goes up lol. +followed
ReplyDeleteThey are laying off some 3500 employs. I guess the stock going up at all is good news at this point.
ReplyDeleteThe economy ain't gonna improve so long as layoffs like this increase...and corpo execs keep rockin' the sweet jets and personal vehicles and incessant bonuses.
ReplyDeleteIn b4 BoA tanks completely. Hope those bastards rot.
This isn't going to improve our economy. We should've never bailed out ANY of the "Too Big To Fail" companies since DURRRR, they failed.
Ain't you mad? It wasn't just MY money (which is why I'm so pissed 'bout it) but yours too! All of us (well, Americans) paid for these bastards to stop from going bankrupt and they respond...by committing more layoffs, increase exec payout and just being as unethically corporate as possible.
From the factory-worker level, my rage is freaking bordering on BURN IT ALL DOWN mode. ESPECIALLY the execs who profit while others lose their jobs.
Not to mention that they took our money from us, changed the usury laws, and loaned it back to us at 30% interest. If that is not cosmic level win, I don't know what is.
ReplyDeleteGreat news.
ReplyDeleteThis is entirely because Warren Buffet personally poured 5 billion dollars into their stock. Which is interesting because they've lost 30 billion in their recent takeover of Countrywide Financial and more than that, they owe hundreds of billions of dollars in mortgage securities. However, Buffet is one of the saviest investors period, so his movements are worth noting. He must believe BOA will pull out of their downward spiral, and he's usually right. In fact, they may survive purely because of his single vote of confidence.
ReplyDeleteThe only thing I know about Bank of America is the occasional spam saying I need to send the my password for my online account for security purposes.
ReplyDeleteI have never set foot in a Bank of America... let alone have an account with them...
nice news!
ReplyDeletegreat news
ReplyDeleteThat cash on hand is going to be spent on huge lawsuits in the Billions.
ReplyDeletemoney money money. i need to start investing more! but that's great news for you amreicans :P
ReplyDeletestock going up is good news but i heard theyre increasing profits by laying people off.
ReplyDeleteI'm a Bank of America customer.
ReplyDeleteHonestly, I kinda enjoy their service.
I dislike the fact that they're in so much financial trouble.
Since they were nice enough to take me even though Chase and Wamu gave me the boot for (thanks alot family) "attempted check fraud" I'll count my blessings. :)
Thumbs up if you agree.