Update on BAC

There is a lot of talk here locally about BAC moving its headquarters to Jersey in coming months. It is not surprise that the southern guys have lost their hold on their prized properties (BAC and Wachovia). Don't forget I got hate mail and malice from persons I knew when I spoke about the banking disaster many months before it happened but that's not the story here. The story is in the charts, what's next for BAC and WFC (took over Wachovia).
Here is what I am seeing: BAC is trading very weak, BAC has been trading in a contractionary range down to 14.12, up to a lower high at 17.18, and then down to lows at 14.68. Notice that the 200-day moving average is around 14.60, and the 50-day is at 15.90, hmm our trading range. What must happen for us to be long this stock is a substantial time frame above the 50day MA, which will be quite difficult therefore I hold that the opposite will happen that of a break of the 14.60 for a substantial period which 'SHOULD' trade us down to the $12 level. There is a 38 Fib number down by $12.85 area on this stock so I would be looking for that level to hold before we go into a tail spin if we do

Paul Volcker Plan

The FED

The overall gist of all the FED"s actions is to boost home prices. They constantly peddle this as good for America when we all know it is unrealistic. Ben Bernanke in 2007 was on television saying home prices would NEVER drop because America had never had home prices declines in over 90 years of statistical data (2007 average home price was over $228k, now we stand around 178k) . America's wages are deflating (adjusted for inflation), taxes, fees and "other" (i.e.- monopoly greed) costs are going up constantly, and the FIRE economy jobs are not coming back. The reason people are defaulting is that homes were overpriced and overpaid for and people don't have the income to service the debt! And they still are by far. Why should one be a debt slave to own a home? This does nothing to help homeowners. It of course only helps the banks.

People are not borrowing because a generational shift in mood and attitudes toward debt is occurring and the FED is lost on this point. Banks are not lending because they too are human subject to social force moods and risk taking is diminishing. Asset mania has likely peaked for more than a generation. I strongly believe we are in a time when more and more might see it prudent to save over invest.