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``It's not a signal automatically of a bad investment because they get a 7.25 percent yield, and the option to convert has a long term,'' said Jefferson Harralson, an analyst at KBW Inc. ``They're supporting a company from bankruptcy that they have loans out to, and that benefit of the transaction doesn't go away.'' Harralson rates Bank of America ``market perform.'' Whew, that must be a relief to B of A stockholders to learn that two (more) billion into Countrywide wasn't "automatically" a bad investment.
--Merrill Kinstler

Here’s another quote from the March 2007 issue of The Elliott Wave Financial Forecast that offers more insight into the psychology behind Bank of America’s faltering bid to rescue Countrywide: 
There is one other frequently cited reason for forging ahead with ever greater amounts of debt. Many bulls say that there is way too much concern about credit for the debt bubble to actually break. As the pied piper of credit creation, Alan Greenspan, said in the midst of the initial subprime washout in early March, “People ask me what kind of shock I worry about, and I say, ‘If I worry about them and other people worry about them, they won’t happen.’” By this logic, the more worried they get, the safer people should feel. To the average contrarian, it probably makes sense.

But contrarianism has its limits, and one of the most valuable aspects of the Wave Principle is that it reveals where these limits are. In third waves and in c-waves within long-term A-B-C moves, the direction of events coincides with the direction of equity prices. The rising wave of anxiety over debt and default is not a “wall of worry;” it’s a “wall of reality.” The current belief that it is otherwise is all part of Bob Prechter’s coined phrase for bear markets: the Slope of Hope.