Posted on 08/08/2011 9:12:14 AM PDT by Nobel_1
With Bank of America investors finally realizing it is game over for the company as a going concern, at this point there are just two options for Brian Moynihan:
- the spin off of CFC as a bad bank, backstopped by the Fed, or
- Chapter 11, which for a bank is essentially liquidation (and with CDS trading up 50 bps to 260 a bankruptcy seems increasingly inevitable).
It also means that another TARP is on the way. And once America realizes that another several trillion have to be put into its insolvent banking sector, it will get quite violent. The biggest irony: it is AIG which takes down the financial system for the second time after its lawsuit against BAC filed last night kills Bank of America.
(Excerpt) Read more at zerohedge.com ...
Everything you said is TRUE! (Except for the last sentence).
“Building America on a new foundation” Of course that means tearing the original foundation down first.
See my tagline for an article on how FDR did it. Obama is carrying it further - and using the same tactics, saying the same words, etc. as FDR did.
What cost stability?
I hope your republic survives the rest of this guy's term.
...or maybe we’ll have a NEW republic.
You need a government that adheres to the constitution, that’s all.
http://www.reuters.com/article/2011/06/22/us-pimco-fed-gross-idUSTRE75L4L820110622
Agree with you there on the cost. But I am saying that if BofA goes down it would be a big negative.
We need less regulation so banks don't get so big and we don't have this as an issue. A larger number of smaller competitors would be a much better system in my opinion.
Regulation has helped to drive competitors out, in my opinion.
The feds will not just let them go boom we all know.
I'm just really amazed; kind of sickened actually; that we are looking this happening again.
Of course it's happening again....all TARP and the bailouts did was delay the inevitable, and make the inevitable all that much worse...it's like the old Fram Oil Filter commercial, "You can pay me now, or you can pay me later."
#54 was a great post. thanks.
i know Harper is a great “Thatcher” type conservative.
so until i read your post, i didn’t understand this:
Canada Surprise GDP Economic Contraction, Largest Drop in Two Years, It’s Not Temporary
http://www.freerepublic.com/focus/f-news/2756781/posts
“Output fell 0.3 percent in May to C$1.26 trillion ($1.32 trillion) “
///
but thanks to you, i know Canada exports more to the USA than i thought, so our Marxist led recession hurts them too.
The article mentions "disruptions in oil and gas" and the tsunami induced "supply chain problems". I think there were a couple of pipeline breaks that slowed oil delivery to the US. Also, Canadian auto plants dependent on Japanese parts were slowed for a time.
As for the Canadian "housing bubble". Most people, including me would say that houses in Vancouver, Edmonton, Calgary, Saskatoon, Ottawa, and Toronto are way overvalued. Each city has its own reason for housing being so expensive. Vancouver, and Toronto, are havens for mainland Chinese. They have been buying in these cities for decades, and continue to do so, thereby driving up prices. The Edmonton and Calgary markets are driven by the oil boom. Saskatoon is driven by energy, uranium, and potash.
Vancouver and Toronto are the ones to watch. You have to ask yourself what will happen if China implodes. Will the Chinese sell their Canadian bolt holes, or, will even more Chinese seek a safe haven investment, thereby steadying prices or driving them even higher?
As oil prices decline a little there will be somewhat less exploration in Alberta, allowing the markets there to cool off a bit, but don't look for them to decline rapidly, the jobs supporting the prices are still there. Please note that there is no capital gains tax in Canada on your principal residence. So, as prices go up, people can freely sell into the market without worrying about the tax implications. It's all cash to the seller.
I'm still working on it. The prick just does not care what happens to this capitolist society. He is a communist to the marrow of his bones.
Yes. My weak attempt at being sarcastic fell below the mark. But it is true. This is his planned destruction of our country/. What a crying shame.
It was originally the Bank of Italy, founded by A. P. Giannini.
You were listening to Ken this AM also. ;)
That's a lot better. I can almost break-dance to it. Keep it up.
The community organizers supportive house of cards is coming down
I was there in the 70’s when the Community Reinvestment Act was foisted upon BofA and the other big players. The Bank had to put aside $10 Billion Dollars, when that was considered big money BTW, to satisfy that Carter era Government mandate. The people I talked to at the time knew that money was just going to be wasted away. The CRA ended up as part of an advertising campaign, so the bank at least got some positive results from that expense.
Now BofA is being blamed for everything under the sun, while it was the Federal Government who put them in the position they face today.
If anyone here thinks that BofA acted outside of the Government parameters that they were forced to follow, they are woefully misinformed. The regulations in place when I worked there were ridiculous, so I can only imagine how much worse they were after I left in 2004.
One other point. While as a stockholder I disagreed with the loans and credit lines made to “undocumented immigrants” (Illegal Aliens), Bank of America was not the first major bank to stick their toe into that water.
They were looking for additional revenue streams and acted to keep up with their competitors. The Government allowed that line of business to proceed, so it was considered just another profit opportunity while operating in a very competitive environment.
Good, bad or indifferent, Bank of America is not the only Company out there that was involved in this entire mess. I guess a drop of blood in the water is a good enough reason to blame BofA for all the world's financial troubles.
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