Thursday, November 11, 2010

Bank of America Is in Deep Trouble, and There May Be Financial Disaster on the Horizon

Will Bank of America be the first Wall Street giant to once again point a gun to its own head, telling us it'll crash and burn and take down the financial system if we don’t pony up for another massive bailout?
When former Treasury Secretary Hank Paulson was handing out trillions to Wall Street, BofA collected $45 billion from the Troubled Asset Relief Program (TARP) to stabilize its balance sheet. It was spun as a success story -- a rebuke of those who urged the banks be put into receivership -- when the behemoth “paid back” the cash last December. But the bank’s stock price has fallen by more than 40 percent since mid-April, and the value of its outstanding stock is currently at around half of what it should be based on its “book value” -- what the company says its holdings are worth.
“The problem for anyone trying to analyze Bank of America’s $2.3 trillion balance sheet,” wrote Bloomberg columnist Jonathan Weil, “is that it’s largely impenetrable.” Nobody really knows the true values of the assets these companies are holding, which has been the case ever since the collapse. But according to Weil, some of BofA’s financial statements “are so delusional that they invite laughter.”
Weil points to the firm’s accounting of its purchase of Countrywide Financial -- the criminal enterprise at the center of the sub-prime securitization market. Bank of America, Weil notes, hasn’t written off Countrywide’s entire value. “In its latest quarterly report with the SEC,” he wrote, “Bank of America said it had determined the asset wasn’t impaired. It might as well be telling the public not to believe any of the numbers on its financial statements.”
More Here..

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  1. October 2009: Bob Chapman
    Video: B of A Will Fail in 2010

    I guess we'll see if he was correct.

  2. I hope Bank of Amerikka crashes and burns hard! Anyone that owes them money should stop paying to help shove them into their grave.

    Same goes for JP Morgan Chase!

  3. A bank run on the crimial Bank of America fraud company should be encouraged for the 7th of December.

    The alternative is that the bailouts for this TBTF insolvant criminal company will go on forever.

  4. US middle class is in its final stages of destruction.
    Soon the bottom rungs of the rich themselves will be destroyed. The USA has become the country of the Big Lie….
    ..If we cannot trust what the government tells us about weapons of mass destruction, terrorist events, and the reasons for its wars and bailouts, can we trust the government’s statement last Friday that the US economy gained 151,000 payroll jobs during October?
    Apparently not. After examining the government’s report, statistician John Williams ( reported that the jobs were "phantom jobs" created by "concurrent seasonal factor adjustments." In other words, the 151,000 jobs cannot be found in the unadjusted underlying data. The jobs were the product of seasonal adjustments concocted by the BLS.
    As usual, the financial press did no investigation and simply reported the number handed to the media by the government.
    The relevant information, the information that you need to know, is that the level of payroll employment today is below the level of 10 years ago. A smaller number of Americans are employed right now than were employed a decade ago.

    Think about what that means.
    We have had a decade of work force growth from youngsters reaching working age and from immigration, legal and illegal, but there are fewer jobs available to accommodate a decade of work force entrants than before the decade began.

    During two years from December 2007 - December 2009, the US economy lost 8,363,000 jobs, according to the payroll jobs data. As of October 2010, payroll jobs purportedly have increased by 874,000, an insufficient amount to keep up with labor force growth. However, John Williams reports that 874,000 is an overestimate of jobs
    as a result of the faulty "birth-death model," which overestimates new business start-ups during recessions and underestimates business failures….see
    By Paul Craig Roberts

  5. If it's time for it to crash...Screw it...Lets do this before I get too old.

  6. Richard Russell - All Fiat Currencies Will Fail
    The second question I have been thinking about is whether fiat currencies, and I mean all of them, are going to survive? As subscribers know, I believe currencies created by government fiat are a fraud, and that they are both illogical and immoral. I believe that ultimately, fiat currencies, all of them, are doomed. Every fiat currency in history has died, and today's fiat currencies will be no different.”

  7. *uck BOA.*uck em all to hell!!!

  8. cracks me up..took tax payer dollers in bailout, then some stock investors bought stock offering last winter so's BofA could "pay back" bailout..amazing, people gave their money for stocks ontop of their tax dollers taken..

    yeah enron accounting is gov sanctioned now..everybody does it but it seems it's slowing..and not going to work forever now huh...that and the eternal revisions to BLS and all data's like going to Moody's and asking them if an investment vehicle is safe and rated good...LOL!

  9. look guys give these fine gentlemen at our banking institutions a break.They mean well they're doing "God's Work".


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