by Jack Lee
Have you ever seen a crisis where government didn’t come away with more power and more of your money? The ultimate power grab would be nationalizing our major banks. This fear has certainly been reflected in the share price of Bank of America Stock (symbol BAC on the NYSE).
In 1946 my thoughful parents opened a saving account for me and I’ve been a B of A customer ever since. It pains me to think this great institution could be taken over by the government quicker than you can say, “Good-bye sweet America”.
This chart shows how 30 years of careful, continuous progress has been virtually wiped out in 6 months time.
I’ve feared for over the last month that pension funds would make a run on the banks in a sudden divestment and this would only compound our already catatrosphic level of financial problems. A government run pension fund must divest from a stock that doesn’t meet certain criteria for stability, such as when a share price goes under $5. We’re well under that price now and if it stays there for long BAC stock could be delisted from the NYSE and pounded down to a penny stock. I know this is hard to believe, the nations 3rd largest bank in the most rapid decline in its long history. In the past 52 weeks the stock has dropped from $43 a share to sub $3.
Nationalizing banks is a nightmare scenario that many local Chicoans can barely bring themselves to think about, yet Wall Street is telling us there is a high probability it could happen. BAC is off about 21% today. Imagine, 21% of the entire worth of BAC stock, evaporated in just a few hours? It’s hard to wrap your brain around that one, this was a quality blue chip company in a very solid sector, but then so many things have changed so much recently, it’s almost unfathomable how much has changed.
Government is on a spending frenzy with more pork projects than I’ve ever seen in my life, the nation is about to double it’s total accumulated debt from many past decades past in one year. And what if this spending isn’t working, is this the time the feds will nationalize our banks? Will Bank of America survive? Will America survive?
What’s next for us heaven only knows, but if you believe our President, the worst is yet to come.