"You know what the news is-- in a minute, you're going to hear the rest of the story"- Paul Harvey

Just a few minutes ago, Bank of America's board authorized buying back $3.75 billion over the next 12 to 18 months. In addition, the board declared its regular 64 cents per share quarterly dividend.

I'm not very smart, but this sure sounds like good news to me.

The other small tidbit on the table is the housing bill which is expected to be passed today, and be signed by President Bush next week. The bill will put the finishing touches on the bailout of Fannie Mae and Freddie Mac.

As I have been saying all a long, the government had to come to the rescue of the financials and housing market sooner rather than later. It was only a matter of time. Clearly, it will take time for the financials to regain their footing, but 2-3 years from now I expect this beaten down sector to lead the stock market higher.

Bank of America's bold move today may very well market the beginning of the healing process for the financials. The move may not be straight up, and there will be bumps along the way, but I am convinced that BAC will be buying stock at bargain prices when we look back two years from now.