Friday, January 11, 2008

Bank of America Buying Countrywide

Bank of America has just announced yesterday that they are going to purchase Countrywide. This news comes just one day after the forecast of bankruptcy for Countrywide. You know there is nothing like waiting until the timing is right to snag a deal.

I believe that Bank of America has been ready to buy since they made their $2 billion dollar investment into Countrywide convertible debentures at a conversion price of $18.00 per share. It seems to me that this is where the deal started and probably secured them a position to make an official move when Countrywide's stock hit the bottom. So the article published by the Weiss Research Group caused national recognition of the bottoming out at Countrywide. Once the stock was beat to death it was an easy move for BofA to anounce the acquisition causing an outrageous rally in Countywide's stock value (over 51% in ONE DAY).

Somehow I think that there was some master manipulation going on....which is absolutely typical for Countrywide and its majority shareholder (Angelo Mozilo). Other blogs have predicted an orange jumpsuit for the orange man (see picture...he sure looks orange to me). His smile makes him look like he is getting away with something.

Orange or not, Mozilo stands to get away with fleecing the public. It was Countrywide's massive subprime lending (and sleazy business practices) that has created much of economic tailspin that we are experiencing today. Take a look at and you will see what I mean.

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