Comments on: Bank of America Acquires a Lemon – My Commentary http://www.personalfinanceanalyst.com/bank-of-america-acquires-a-lemon-my-commentary/ A Personal Finance Blog dedicated to taking the mystery out of money and helping you to live a happier, more successful life. Tue, 01 Nov 2011 21:41:33 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Tanesha http://www.personalfinanceanalyst.com/bank-of-america-acquires-a-lemon-my-commentary/comment-page-1/#comment-1180 Tanesha Sun, 21 Sep 2008 16:50:01 +0000 http://www.personalfinanceanalyst.com/?p=733#comment-1180 I like your analogy and I see your point. But I can't see how buying somebody else problems is a good move... at least, not in this case. Bank of America has been pretty much sheltered from the subprime market... especially when compared to other major banks. But taking on Merrill Lynch exposed them to a proven lemon. However, I will agree... if all of the bad seeds have been weeded out, BOA can profit. But that has yet to be seen. I like your analogy and I see your point. But I can’t see how buying somebody else problems is a good move… at least, not in this case. Bank of America has been pretty much sheltered from the subprime market… especially when compared to other major banks. But taking on Merrill Lynch exposed them to a proven lemon.

However, I will agree… if all of the bad seeds have been weeded out, BOA can profit. But that has yet to be seen.

]]> By: Uncommonadvice http://www.personalfinanceanalyst.com/bank-of-america-acquires-a-lemon-my-commentary/comment-page-1/#comment-1152 Uncommonadvice Fri, 19 Sep 2008 18:07:14 +0000 http://www.personalfinanceanalyst.com/?p=733#comment-1152 Look at it from the other point of view: Your mate has a field full of Golden Egg laying Geese. Unfortunately though she took on too many of these Geese and the field got overfilled. Some of the Golden Geese were crushed. Others died because your mate pestered them to lay too often. This annoyed your mate because every time one died she had to pay for it to be buried properly. Even though the flock would make her millions in the future, the present day small change was beginning to get too much. She offers you the field. Now, you can handle the cost of the burials so you only care about the millions you will make in the future. Most of the geese that were going to die have done so now anyway. The rest of the flock is healthy and making you a lovely profit! The governments will win in the long run by taking on these loans. Look at it from the other point of view:

Your mate has a field full of Golden Egg laying Geese. Unfortunately though she took on too many of these Geese and the field got overfilled. Some of the Golden Geese were crushed. Others died because your mate pestered them to lay too often. This annoyed your mate because every time one died she had to pay for it to be buried properly. Even though the flock would make her millions in the future, the present day small change was beginning to get too much. She offers you the field.

Now, you can handle the cost of the burials so you only care about the millions you will make in the future. Most of the geese that were going to die have done so now anyway. The rest of the flock is healthy and making you a lovely profit!

The governments will win in the long run by taking on these loans.

]]>