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Monster Prediction From BofA: Another US Debt Downgrade Is Coming In Just A Few Weeks
Business Insider ^ | 10/22/11 | Joe Weisenthal

Posted on 10/22/2011 9:17:42 AM PDT by TigerLikesRooster

Monster Prediction From BofA: Another US Debt Downgrade Is Coming In Just A Few Weeks

Joe Weisenthal | Oct. 22, 2011, 7:04 AM | 4,055 | 48

In an analyst note, Bofa/ML Ethan S. Harris drops a bit of a bombshell prediction:

We expect a moderate slowdown in the beginning of next year, as two small policy shocks—another debt downgrade and fiscal tightening—hit the economy. The “not-so-super” Deficit Commission is very unlikely to come up with a credible deficit-reduction plan. The committee is more divided than the overall Congress. Since the fall-back plan is sharp cuts in discretionary spending, the whole point of the Committee is to put taxes and entitlements on the table. However, all the Republican members have signed the Norquist “no taxes” pledge and with taxes off the table it is hard to imagine the liberal Democrats on the Committee agreeing to significant entitlement cuts. The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan. Hence, we expect at least one credit downgrade in late November or early December when the super Committee crashes.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: america; bankofamerica; boa; businesskillers; catfoodcommittee; communistcommittee; debt; debtcrisis; debtdowngrade; downgrade; economy; federalfunding; kenyanidiot; regulatory; supercommittee; us; usa; usdebt

1 posted on 10/22/2011 9:17:53 AM PDT by TigerLikesRooster
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To: TigerLikesRooster

I’m not very savvy when it comes to banks and money.

Is it time to cash in my (5 yr) IRA at BOA?
It’s getting 3.49 % interest and is up in mid 2012?


2 posted on 10/22/2011 9:27:00 AM PDT by TribalPrincess2U (2012—They vote twice— we'll vote three times.)
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To: TigerLikesRooster

Ha ha—of course, after the rating agencies find out BofA just transferred $55T in derivatives exposure to the FDIC-insured portion of their business.


3 posted on 10/22/2011 9:29:35 AM PDT by 9YearLurker
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

P!


4 posted on 10/22/2011 9:33:52 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster; All

Got baked beans???


5 posted on 10/22/2011 9:37:28 AM PDT by djf (Soon you will need a prescription for EVERY SINGLE VITAMIN.)
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To: TribalPrincess2U
Is it time to cash in my (5 yr) IRA at BOA? It’s getting 3.49 % interest and is up in mid 2012?

I hope you realize that your money is being used to speculate in derivatives.

BofA Said to Split Regulators Over Moving Merrill Derivatives to Bank Unit

Sleight of hand: BofA moves dodgy Merrill derivatives to bank

Oh, and your tax dollars are insuring their bets.

Talk about one hell of a hedging strategy - Bank of America executives win no matter what, taxpayers bear all the risk.

6 posted on 10/22/2011 9:37:48 AM PDT by rabscuttle385 (Live Free or Die)
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To: TribalPrincess2U

[’m not very savvy when it comes to banks and money.

Is it time to cash in my (5 yr) IRA at BOA?
It’s getting 3.49 % interest and is up in mid 2012?]

Let’s put it this way, the inflation rate is 3.5%.


7 posted on 10/22/2011 9:47:27 AM PDT by DaxtonBrown (http://www.futurnamics.com/reid.php)
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To: TigerLikesRooster

Is this insider trading?


8 posted on 10/22/2011 9:53:45 AM PDT by mountainlion (I am voting for Sarah after getting screwed again by the DC Thugs.)
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To: DaxtonBrown

What’s the best way to get a consistent rate of return that exceeds 3.5%?


9 posted on 10/22/2011 10:12:08 AM PDT by Magic Fingers
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Are You A Whining FReeper?

Got A Gripe So You Won't Donate?


Click The Pic

Isn't That Like Setting Fire To Your Own Home?

When FR Is Gone, Where Will You Go Then?

10 posted on 10/22/2011 10:26:01 AM PDT by DJ MacWoW (America! The wolves are here! What will you do?)
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To: Magic Fingers

Dividend-paying stocks: energy, healthcare, large multinationals.

I’ve been getting right at 8% the last three years....


11 posted on 10/22/2011 10:50:30 AM PDT by clee1 (We use 43 muscles to frown, 17 to smile, and 2 to pull a trigger. I'm lazy and I'm tired of smiling.)
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To: TribalPrincess2U
I don't think the current attacks on BOA are going to work despite the efforts of OWS, Dick Durbin, and various forces in NYC to bring it down.

One reason some people don't like BOA...it's headquartered in North Carolina which is anathema to many in the NYC financial community.

12 posted on 10/22/2011 10:55:17 AM PDT by Siena Dreaming
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To: DaxtonBrown; TribalPrincess2U

13 posted on 10/22/2011 11:23:21 AM PDT by blam
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To: TigerLikesRooster

I’ve been saying this a few times this week. Expected at least another one before ‘Bammy leaves office. Probably more than one. Making the debt even more expensive.


14 posted on 10/22/2011 3:01:17 PM PDT by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: Magic Fingers

Find a small biz with cash flow problems, good receivables, and orders on the books. Get them to give you 51% of the stock with a buyback clause for when they get healthy and a claim on receivables if you provide the cash they need.

One of my customers is in this boat. The Factoring Loansharks want 30%. They will be happy to pay you 15%.

The equity position is so that your profit comes in the form of capital gains....which is at ZERO percent under the small biz stimulus act of last year.

I really think the best deals are investing in small biz right now. The weak ones already died.


15 posted on 10/22/2011 4:11:24 PM PDT by darth
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To: TribalPrincess2U
The worst that could happen if you bail now would be some stagnant money until you reinvest it...and you can have as many sleep filled nights as you want while you decide when & where to get back in.

As to what to invest in, I like energy majors, cleel made some good suggestions, and you're not near as likely to have it melt down.

Remember, BOA went from 8 to 6 virtually overnight after Buffet invested 5 billion....

16 posted on 10/22/2011 4:38:58 PM PDT by 4woodenboats (Obama.....a perfect example of why you can't trust someone that won't look you in the eye)
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To: blam; TigerLikesRooster

The last downgrade was strange and funny, in a way. Downgrade the dollar to show how risky it is, and gobs of rebels from various, pro-foreign and other interests pump it up higher by moving monstrous amounts into our treasuries. At least one of the future retaliations of that nature won’t be so funny, though. Eventually, that behavior will very adversely affect our exports and what’s left of American jobs (dollar too internationally high). IMO, the global markets aren’t really so free.

The economic collapse can be put off to buy time for all who will wisely use the time, but it appears that there’s no way out of a complete collapse.


17 posted on 10/22/2011 8:53:13 PM PDT by familyop ("Dry land is not just our destination, it is our destiny!" --Deacon character, "Waterworld")
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To: familyop
"The economic collapse can be put off to buy time for all who will wisely use the time, but it appears that there’s no way out of a complete collapse."

That's my opinion too.

18 posted on 10/22/2011 9:45:14 PM PDT by blam
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To: TigerLikesRooster

19 posted on 10/23/2011 5:04:27 AM PDT by Zakeet (If it ain't broke, the Wee Wee will fix it until it is)
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To: Magic Fingers

Maybe Australian bonds. Or a dividend stock like VGR


20 posted on 10/25/2011 3:48:57 PM PDT by DaxtonBrown (http://www.futurnamics.com/reid.php)
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