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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (71505)	11/21/2007 12:48:11 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 116555

The government needs to send in bank monitors to make sure CFC doesn't start shifting money or responsibility back and forth between CFC's bank and lending sides to cover their a$$ets. Or shift responsibility onto the taxpayer or some kind of bankruptcy protection.

To: mishedlo who wrote (71505)	11/21/2007 7:54:38 PM
From: Incitatus	Read Replies (2) \| Respond to of 116555

Countrywide shares traded for about three hours below $9 on Tuesday, half the $18 conversion price for the $2 billion of preferred stock Bank of America Corp (BAC.N: Quote, Profile, Research), the second- largest U.S. bank, bought in August. Given the convertible stock, wouldn't it be smart for BoA to short Countrywide just under $18 per share? If Countrywide goes bankrupt, they make out huge on the short. If Countrywide succeeds and the stock rises, they can convert the preferred stock to cover the shorts. It prevents the "unlimited upside risk" of shorting and prevents any need to cover on a rally. I think it's called shorting against the box?