I find myself struck by the pitiful denial in which markets find themselves with respect to the crisis which continues to stalk America’s regional banks. Yes, there might be a contrarian trade to be made in looking for the bottom and trying to pick up some bargains because they won’t all go to the wall. In late 2006 and before the outbreak of the GFC, Bank of America’s stock peaked at or around US$ 54/share. Two and a bit years later it hit the low of just below US$ 4.00. It closed last night at US$ 27.36. So has it risen 7-fold in 15 years or has it halved in 17? I heard reported this morning that the Nikkei 225 has just hit a 33-year high. At 30,000 pts it really is doing fine but the fact that it is at a 33-year high reveals that before then it must have been higher. And it was. It hit its own peak at the year-end of 1989 when it came within spitting distance of 40,000 pts. So is 30,000 pts today good or bad?
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Time to think the unthinkable: nationalise…
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I find myself struck by the pitiful denial in which markets find themselves with respect to the crisis which continues to stalk America’s regional banks. Yes, there might be a contrarian trade to be made in looking for the bottom and trying to pick up some bargains because they won’t all go to the wall. In late 2006 and before the outbreak of the GFC, Bank of America’s stock peaked at or around US$ 54/share. Two and a bit years later it hit the low of just below US$ 4.00. It closed last night at US$ 27.36. So has it risen 7-fold in 15 years or has it halved in 17? I heard reported this morning that the Nikkei 225 has just hit a 33-year high. At 30,000 pts it really is doing fine but the fact that it is at a 33-year high reveals that before then it must have been higher. And it was. It hit its own peak at the year-end of 1989 when it came within spitting distance of 40,000 pts. So is 30,000 pts today good or bad?