BAC Breaks 4 Handle, Drags Entire Market Down
As definitive evidence just how fucked up this entire market is, here is what happens to the ES the second the infinite BAC Bid at $5.00 finally gets taken out. This is the ESH2. That's right - the entire market moved tens billions in market cap because the Plunge Protection Team just failed at protecting the "precious" $5.00 level.
Goodbye $5.00 BAC, we hardly knew ye:
Those in pain:
Goodbye:
h/t Hedgeless Horseman
(13 votes)
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I'm all tingly inside.
I am so happy right now.
Can someone comment on the margin requirements? I know that once a stock goes below 5 its more stricter, yes?
Many brokers have increasing margin requirements as stocks trade lower. When closing at $4, the margin requirements are HUGE at most major brokers. $5 is the point when most major funds realize they need to get out. Also, some funds expressly forbid < $5 stocks due to volatility ... nobody likes penny stocks.
I'm overjoyed that bathtub coke loving Buffett is crying today...
A nice warm bath with salts and $7.14 warrants, bwahahaha
buffet has lost 1.5 billion with BofA. hahahaha what a loser!
im not at all defending him here, but he is not looking at what happens months after he purchases a stock. lets wait till bac is dust before dancing on the grave.............
Fo Sho!
The important thing might be SPX under 1200.
Buffet a loser? So I guess all your calls are correct? Any idea what options he has?
Jesus.
How much for 1 rib?
1 BAC share?
Heh. More like a *McRib*.
Back in summer didn't someone put a billion dollar short on BoA at $5 strike?
don't underestimate the oracle, he knows how to play the game that is wall st. It is by no concidence that he owned banks, rating firms, new wires.....now he owns political insiders at the very top...Obama.
He gets $300M divds every year no matter the stock price, so even if BAC goes down 50% to $3.5ish, he lost $2.5B in equity, but earned $300M x year.....in 8 years he would have pretty much broke even with $2.4B in divds + BAC will pay him $250M when they buy his shares back.
Don't forget he also got options for free.
Buffet makes money unless bank of america gets nationalized or goes to zero. Obama will make sure neither will happen.
plus he may have hedge his position with Citibank short. who knows.
All I know is you and I CANNOT get the same deal buffet gets. Free market? yeah right.
Couldn't have put it better myself. The honourable Warren Buffet (presidential medal of freedom winner) is simply buying when there is blood in the streets. While the ZH doomers jump up and down in a frenzy of masochistic glee, Mr Buffet is calmly picking up value stocks at bargain prices. And his courage is truly something to be admired.
Far from your best - Cast another line!
That's not bad, I mean, Buffet is down 20%, right, so now is a great time to buy!
Buy everybody! Buffet is!
Gorge the BAC buffet.
for common yes, but preferreds are down only 9% and buffett gets 6% annual
@Kito - When MDB glowingly endorses your post, you know you fucked up...
Good one MBD if the rest of my honorable ZH borthers and sisters don't get your sarcasim its a shame. You are consistant in your mockery.
ummmm... very courageous to face the hoards of crony capitalist bitchez...
I myself never once cracked even the most mildest of grins because of one of your posts. I honestly cannot figure out why anybody would bother to give you any credence at all.
...the government is a wholesome purveyor of liberty and free markets. The gods shine upon them. We should swear complete fealty to these lovings leaders."...or some such bullshit. It may have been mildly amusing once. It's peurile to me.
Hey MDB, weren't you a bit sad over Kim Jong Il's death?
Then maybe not. Perhaps you're looking forward to his son being even more ruthless.
Blood in the streets? Maybe it's Buffet's?
Use the NDAA to send the financial terrorist to Guantanamo and front run his empire. I'm sure at least a few rats in the sinking ship are drawing up gameplans now.
Uncle Warren has lost it if he did not exercise those warrants when BAC was at $8.xx in the days after his investment was announced.
And Sell-Side Wall Street & The Banks sing out:
Ben Bernankio
Send us a dream
Monetize quadrillions with your Fed Reserve team
Make The Bernank-CERN printer scream
Ben Bernankio
You must plug this dam
We're losing money
We're in a real jam
Timmay Geithner
Send us a dream
Make it all TARP-like
Like we've never seen
Timmay Franz Geithner
Please get more taxpayer blank checks
Our toxic assets
Are causing bondholder defects
Bernankio & Timmay Please send us a dream!
Mr. Krishna make us a hammer,
disabuse us of our lack of responsibility,
make our resolve to care for ourselves through our growth,
beyond the pain that we will feel in piercing our dream-like state,
as we emerge into the horror (the horror) of the larger reality,
we will quiver in fear, but Mr Krishna stands with us and is us,
to make it obvious that we have arrived.
(stare in the mirror and you see Mr. Krishna.)
(he is Tyler Durden and you are the narrator.)
( "you've met me at a really strange time in my life." )
buffet has lost 1.5 billion with BofA. hahahaha what a loser!
I think most here figured he would maybe live to regret that one...........
please quantify with notarized receipts exactly whose money he invested.
you think it was his?
he is a hood ornament of the squid.
he doesn't show the symptomology as much as folks like Munger and Franks do.
but he is nonetheless.
Warren Bufoon, what a maroon! hehehe
Nah? surely, its all just a fiendish plot........
I have a feeling that the tax payers will be some how covering Warren's bets.
You know that's a fact. I'm no fan of BAC, but in the end, the whole country would have to go down before BAC (and a few select others) are left to fry. Warren's fine. He's connected. Most of his terribly bad looking bets paid out - betting against him as proven that you don't know as much (or have as many buddies in the right places) as he does.
I don't think there are any connected billionaires here calling Warren out...
@camaro68ss
Someday, you are going to thank him for what he did for the country during last eight months... but that's the secret... secret secret! Money was the last thing on his mind!
PS -1
And what...you're a billionaire investor?
buffet has lost 1.5 billion with BofA. hahahaha what a loser!
Yeah, but, there's always Becky
OOOps. I read this and got a tingly flash as the old saying "He who laughs last..." flashed through me head.
All I know is that sob is one fuck of a lot by several orders of magnitude richer than I, and I suspect thou, and it ain't over. The question may be, is BAC TBTF, and will his buddies at the White House and Fed make it all better, or will BAC be whacked up and parceled out to the Squid, JPM and other present survivors?
Maybe we could pass it over the sea to Mario (either one of them - the *origianal Bank of America started as the Bank of Italy in San Francisco).
NFP
Someone needs to take a Nebraska corn cob, dip it in mercury and shove it up Buffett's.......
Wow, I agree with you.
N/t
Guess we'll never bump into you at the Dairy Queen.
Frankly Buffet doesn't care, Buffet owns preferred shares (not common equity) which are not traded on any market. As long as BAC doesn't go bankrupt (and the U.S. would never allow that to happen), then Buffet gets paid.
Buffett is such a devious ***k that the avg Joe's ran out and bought the common stock thinking they were buying what Buffett was buying. Poor sheep.
I didn't read the details, but IIRC .... Buffet's stock converts to common. He's pretty much fucked just like the common holders, maybe not as bad... but still fucked.
There were two parts to the deal, the $5 billion in preferred stock which gets him a 6% dividend (pretty frickin' outstanding), and warrants for common stock at $7.14. Now obviously he won't be exercising the common stock warrants any time soon, and his preferred shares are probably technically worth less, but if he's making a 6% dividend it's still a pretty sweet deal considering you can't get yield for shit anywhere these days. Unless of course BAC goes tits up, in which case he's out the $5 billion. Then the bathtub becomes a swimming pool!
Buffet is the muslim's golden boy. Ditto with Corzine. Dems do not lose or go to jail. Corzine and Buffett need to be "sanduskyed"
Bernanke is not muslim.
jesus Freddie...
did a Democrat give you that funky haircut/makeover?
give it a rest ya partisan fanboy...
I think we were all hoping that you had finally given that "Muslim" thing a rest since you seemed to have posted for a day without mentioning it. We can all still hope...
red i gave you a red arrow, because i dont think when all things considered, i would not make that bet 5 bl for 6%....risk, net reward, taxes etc..
i will make this general assumption, ...most people here have known about bac's future ...there was info here that announced when it was trading in the 15's.... announcing its terminal illness....
now with that being said, i'm thinking these fucks drink their own kool-aid and do not realize reality..they have lived in such a manipulated fantasy financial world for so long it has become their reality.....they will never see the exponential wave of nature that is about to swallow them up.. their egos will not allow it..
The old fart did not "buy" BAC as an investment but rather as a way of promoting confidence in his paper regime. $4.99 shows that his credibility is eroding and it is rather irrelevant what type of shares he bought. Afterall if BAC goes, so will his beloved BRK
Don't buy the stock, load up on some DITM puts....
Sit back, smoke a cigar and break out the Grand Marnier..
Dirty magazine, optional
Anyone out there own the SKF? If so are you also suprised like I am that is is 66 freakin bucks when it should be about 150/share right now? Horseshit.
It is where it is... There's no "should be" about it. That's trading - know when to bail out. If and when it gets to 150, that's where it is - and that's all that matters.
"Lehman Brothers is still trading." Hell even American Airlines! In this market "no company is too bankrupt not to have a chance to still squeeze a tenth of a penny out of." Absolutely ridiculous. The irony of course is that the USA is on the cusp of the biggest energy revolution since the discovery of oil. And of course..."the losers" make it worse for all us as a consequence.
HFT algos and SkyNet malfunctioning the markets. Air plant blows. What is barometric i mean volume pressure of hopium leviation undercurrent now?
I am NOT happy and tingly inside. This could be nother one of those straws that breaks the system. And ALMOST ALL of us will suffer, even those of us with Au and Ag.
Extreme caution everyone...
The Fed will bailout BofA perpetually, and Uncle Asshole's preferred stock along with it.
Nothing can happen perpetually. BAC goes to zero when the FRN goes tits up.
Beans, bullets, bullion.
We need to reset. Not for me or my children, but for their children. The entire system is corrupt. Get rid of the banks, period. Lets really have a free market economy. I am tired of feeding the monster. It is never satisfied.
You're right, no matter how much my balance sheet goes up from being short, we'll all suffer from the shit hitting the fan. But at the end of the day (...er, century), there isn't any other way for things to get fixed. Anything less than a complete assraping and wall street and washington will contrive to blame it all on an anomaly that could never happen again. No new rules will be made, nobody will be punished, nobody will learn a god damn thing about prudence, and we'll just spend years more getting slowly drained of our blood.
To be honest - I just want to make money on my puts and GTFO. I hope BAC doesn't go kaput, and it probably won't because the Fed will nationalize it.
hey the oracle is getting fucked real good. i love it when a plan comes together. what goes around comes around..............
On the close of trading today, I dub him 'Orfice of Omaha'.
Not me, I had just bailed on all my puts 'cause it was such a snoozer of the day and went to the gym. Oh well, lesson learned.
This is a feel good day! I hope old man Buffet loses his fucking shirt!
pauson did do something right when he dumped much of his position in bac earlier this year..
Ms Quick...Hurry Mr Buffett needs you...he just pooped in his bath, apparantly BAC went to less than $5!!!!
Wouldn’t you take money out of individual accounts rather than losing your life? According to SilverDoctors, that’s the choice Corzine was faced with.
http://silverdoctors.blogspot.com/2011/12/jp-mograns-jaime-dimonthreaten...
While its entirely possible that its true its total reckless speculation of Keiser. I guess his interenet presence and possibly himself will be disappeared soon.
BAC breaks, and drags entire market down"---or vice versa. Causation is always difficult to specify, and is frequently in the eye of the beholder.
Bruce Berkowitz just had a really, really bad day week month. With the exception of MBIA.
this is smoke. wait til BAC hits 3 handle. then we see fire. I'm filled with glee to know the bank that absorbed countrywide financial may be a penny stock in the next 8 month.
Yes...there IS a Santa after all! Merry Christmas Bank Against America!
Yes, Happy Crucifixtion Day, Bank of Unmerica. Do those nails need another tap, or are they just about all right like that?
call the VIX
YOU SAY THE F WORD.....!!!
I think the word is appropriate. The overall market moved massively on a single penny move of BAC. This shows fragility. Many traders are already gone for the end of the year. The traders still present are laying low and trading cautiously since they've already closed their books for year end.
If this was a high volume day, you'd probably see a -15 pt move in the S&P500 at the same event. So yes, this is totally fucked. This is as fucked as the intraday trading that occurred when the US received its downgrade from AAA. That intraday was also FUCKED beyond belief. No trader could keep up with that fast paced market, it was entirely PPT and HFT trading.
I worked on Wall Street during that time. I can tell you MANY of the major wall street firms were maxing out their pipelines and systems were getting backed up like crazy just handing tick and quote processing. People could not enter trades before they'd be invalidated by automated systems.
Sounds like a "free market" to me.
That's how you know FOR SURE things are bad, Tyler losing his cool.
That hasn't happened since he shot that gun at himself in the back of the van loaded with Nitro.
So, now what?
Now, BAC shareholders bend over and grab their ankles...
Reverse Split. Or the Fed buying their shares.
Yep. 1 for 10; just like Shitibank.
See ya BAC. Don't come BACK.
Wonder how the BUFFET is feeling bout now?.
As long as WF stays afloat, I'd say he's happy with his ROI.
Reverse Split. Or the Fed buying their shares.