Thanks for your thoughts but I have decided to hold the BAC stock....to the ground maybe, but I certainly hope not.....I know that I will have to find other income to live off of other than the dividends....and I accept the fact that it will be MANY years before BAC regains its footing.....BUT it seems to me that the recent government (backing/bailout) plan to maximize BAC's losses (it appears BAC is limited to 10%) should put them in a position to continue in business. I do see possible further erosion of the stock price as mutual funds unload it to replace it with something that WILL be paying a decent dividend....although even that should be a slow process as they will not want to (or should not want to) drive the price down further either....
Even their latest quarter indcated an INCREASE in net interest income of 32% (up from $34Bil to $45Bil) and a 2008 YTD net income of 4 billion! (I hear YOU
....and at that rate it will take 10+ years to pay back the FED)
I realize that the continued recession may impact their earnings but with the (as I have read) FORCED acquisition of Merrll Lynch (seems Mr. Lewis had thoughts of using his "back out clause") by the FED, it appears the FED thinks them a necessary part of the American banking system.....
I do NOT plan on buying more BAC.....no doubling down.....although I have to say that I am having to resist that temptation
!!
I found another poster on another site who seemed to have summed it up well ~
"To say that I'm infuriated is an understatement. I feel cheated, swindled, and betrayed. I know, of course, that investing in any company is risky. Money can be be lost, even all of it sometimes. But somehow I see this as being different. And not just because I had money in it. This is Bank of America, for God sake. The number 1 bank in the world. Now, because of greed and incompetence they're wards of the state."
Finally.....as one of those posters who thought runningman to be way off the mark with his BAC predictions, I offer my whole hearted apology and invite his insight here again....and I have to admit that if his current analysis indicates significant futher erosion in the stock price, I would reconsider my decision.....
......