On 17 November, I wrote about Bank of America buying $$2 billion worth of preferred Countrywide stock yielding 7.3%, and that can be converted into common stock at $18 per share (a 21% discount of the then price). It was supposed to be master stroke of vulture capitalism, giving away the gold the golden goose for some magic beans.

At the time, I said, “Honestly, I think that they will end up losing money on this.“

It appears that I was right (happy dance), and we are now seeing the articles wondering how Can Bank of America Can Salvage Its Countrywide Stake. They didn’t buy the golden goose, they bought the intestinal gas from the beans (It’s trading for $8.72), and now everyone is wondering how BoA will minimize its hurt.

These guys are paid millions of dollars to get stuff like this right, and they didn’t, and I did.

It doesn’t take a genius to figure this stuff out.