Brian Moynihan echoes our belief that in the U.S. credit trends are far better than in Europe.  The primary risks in the U.S. are that policymakers abroad and in the U.S. will not adequately promote growth policies.  We’ve seen this before such as wrangling about the debt ceiling, and in Europe the response to the financial crisis the response has been inadequate to the severity of the problems.  These risks filter down to hurt the economy but low valuations reflected in U.S. financials are in no way warranted.  I struggle to see why these companies aren’t trading at tangible book value at the very worst and I expect the discount to be arbitraged away as the company’s gain the ability to buy back stock.

http://www.bloomberg.com/news/2012-05-30/bofa-chief-sees-europe-crisis-s-indirect-impact-as-bigger-threat.html

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