I am a holder of BAC, and regret it, and classify it as a mistake. I am no hurry to sell, however, and will probably be stuck with my investment for a few years. I need to learn my lessons that I try to teach myself better. Sometimes I just do not listen. Is it possible that Bank of America will be in need of a bailout just like Citigroup, as suggested by a money manager? Reuters I suspect that BAC is better managed than Citigroup but the acquisitions of Countrywide and Merrill probably does place BAC near the top of major banks that may need a Citigroup bailout.
Glimcher has a troubled mall in Charlotte, North Carolina called Eastland. I knew about it when I made my recent foray into GRTPRF. Judging from a recently filed 8-K, it appears that the existing loan on the mall for 42 million was non-recourse. GRT will pay some operating expenses while an attempt is made to sell the mall but GRT can cede title to the lender in the event this effort is not successful before 9/2009 and will simply pay interest on the outstanding loan with no principal payments until that date or earlier if the mall is sold. Summary of GLIMCHER REALTY TRUST - Yahoo! Finance
I may be reading that wrong but that is how I interpret this filing. It is always advantageous to a REIT to have a non-recourse secured loan in the event the property runs into trouble, as this three decade old mall apparently did at some point. I would add that Glimcher had to accept on recent loans a 50% recourse provision which indicates that it has lost some leverage with lenders. Yahoo! Finance This could be trouble a few years down the road.
I have always wondered about my unknown compadres in the investing world. On Monday of this week , I bought shares in Lincoln National at $6.45 Time to Fire my Head Trader: He Bought LNC
Today, after a shortened trading week, it closed at 13.73. Is that insane or how would you characterize it when the stock of a large company gains more than 100% in a week? I always wondered about being rational, maybe I ought to be drinking whatever everyone else was having. How could anyone call the market efficient and rational? But, more than the wild fluctuations in individual stock names, the price of U.S. treasuries makes no sense to me at all. Prices just hit a 50 year low. CNBC.com Investors are lending the U.S. government, hardly the bastion of prudent spending and behavior, money at negative real rates of return, guaranteed to lose money after inflation, let alone after taxes. Disaster will have to happen to bail out those lending the U.S. money at 3% for 10 years. Maybe they are right and everything will just go to hell in a replay of the Great Depression. I do not see it that way and believe that the ones loading up on treasury debt, fleeing all other asset classes, have let their fears get the better of them. Nonetheless, I do hold some treasuries, just in case these fools are right.