Financials … insider buying or just desperation?

Here we go …
- Bank of America buys Countrywide Financial in a stock deal for 4 bln$.
- JP Morgan is rumoured to snap up Washington Mutual or somebody else. CNBC says, they want to do something!
- Buffett is said to consider buying a troubled bond insurer.

Ok, we used to see Asian and Arab money buying parts of financial firms as they want to use the opportunity, when they have it, as usual no bank wants them involved …

BUT NOW … Financials buying up the “victims”??? This is a different story.

Does this mean, the sector is CHEAP??? It might be. At least for now. Merill is rumoured to have 15 bln$ write off in Q4 and … the stock MOVES UP

Or … nobody hopes this … this is just a DESPERATE MOVE to win time and stem further losses for the time being. At the end it does not matter whether you go bankrupt with 100bln$ or 104bln$, does it?

But as long you have the chance to avoid that, you keep buying!

Only time will tell.

Tags: BoA, Buffett, Countrywide, JP Morgan, Merill Lynch, subprime

This entry was posted on Freitag, Januar 11th, 2008 at 16:16 and is filed under FDAX. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.