Bank of America now on a p/e of 7 or 8?Thats only based on...

Bank of America now on a p/e of 7 or 8?

Thats only based on recent profit forecasts for 2008. What if their profit actually comes in at zero or, quite possibly, a massive loss? Whats the p/e then?????

For those not old enough to remember the 1990/91 recession have a look at the banks performance during those times. WBC and ANZ were basket cases, looking like gone for all money. State Banks collapsed and absorbed into the then Commonwealth owned Bank. Why did it happen? Bad debts from loans that should never have been given as the borrowers could not afford the higher interest rates.

If it sounds familiar it is. It always happens again, always. Before that it was 1974. Read some history and learn that cycles are a natural phenomenon.

Don't feel threated by it all. Just learn and prosper. Be ready incase it happens again, and be ready to accept all possible outcomes. Be on your toes.................