With the recent severe sharp decline in Bank Of America, is this move telling us something?
This move is very reminiscent of those of Fannie Mae and Freddie Mac. Both of these institutions were put into conservatorship by the government.
The stock price for BAC especially is telling us that some sort of nationalization is going to happen. In the end, its not a necessarily a bad thing, as it would take away this particular anxiety that the market has currently.
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