Comments on: Officially Leaked - BAC needs $34 Billion

By: matthew herrick

matthew herrick — Thu, 07 May 2009 02:21:30 +0000

should be bullish for gold and silver. silver seems to want to go higher of late.

jason — Wed, 06 May 2009 16:59:52 +0000

why was TARP money ever needed in the first place when they now show that they can convert Preferred to Common and not need to raise equity.

jason — Wed, 06 May 2009 15:52:57 +0000

why did BAC go up then if they need an additional $34 billion?

Richard — Wed, 06 May 2009 06:13:32 +0000

Btw, this formula does not and cannot (by nature) account for the only way to escape from Gambler’s Ruin after it has set in… Windfall.

In most cases Windfall cannot be predicted and, therefore, cannot be accounted for by the formula.

Richard — Wed, 06 May 2009 06:08:48 +0000

Leverage is so simple yet so misunderstood.

I hypothesize that Gambler’s Ruin sets in whenever L > 61.803399%,

where

L = D / A

D = True Debt (including growth or decay for any period of time, t)

A - True Assets (including growth or decay for any period of time, t)

Do you think anyone has written about this yet? I just came up with it and I’m pretty sure it’s correct.

I know it can be made prettier with exponentials and other math stuff.