$8.5 BILLION RECKONING: Bank of America crashing

reply to post by CaDreamer


I closed out my bank accounts 5 years ago (still don't have one). At one time I had a BoA acct as they bought out NationsBank. They were doing some screwy things with my debits and direct deposits, so I went in 1 day and closed my acct. The odd part was, even though the bank mgr closed my acct, they wanted me to take out a home loan with them. I saw their pirate tactics way back then.

I noticed in the OP that they were setting aside $5B to secure against govt institutions (Freddie & Fannie). Sounds to me like we bailed them out for nothing, and BoA's Countrywide was their lesson on how they clean a loaded gun.

Originally posted by Rockpuck
reply to post by wildtimes

 

People stop paying? .. Not likely?

And the IMF is controlled by the US Congress .....

It'll be the Federal Reserve that demands austerity (which they already have)

And, of course, Greece has no control over it's currency .. it's like a State .. California can't print Dollars. The US gov can.

Little question

It is told that the us gov cant, they need to loan it from either the federal reserve wich is a private institution or from other investors, that would be wrong?

reply to post by earthling42

It is told that the us gov cant

Cant what? Print money? Technically only Congress prints money.. the Federal Reserve, technically, prints no money. They do however make magical numbers appear on computer screens to transfer to other computer screens that can be redeemed in cash.. BUT .. there is more money in existence than cash, and only Congress can print cash.. so, theoretically, if everyone all at once demanded their total cash balance in .. cash .. far more would be left with nothing than those they get even a little.

they need to loan it from either the federal reserve wich is a private institution

The Federal Reserve is a Government mandated Board to oversee a specific industry. It is not owned, it is not private, and it is not exclusive. Many other industries have the exact same thing (Insurance for instance). The only difference with the Federal Reserve Bank is that it is governed exclusively without government oversite. So we set up their charter, Congress retains the ability to abolish the Charter they issued, the executive branch selects the Governors but the Governors come from the largest Member Banks. Then .. once they are set up and on their way ... the US Government has almost no say at all in what they do. So yes, it's run by banks. Technically it's run by Congress. Also, technically, it's the only Government agency that makes a profit.

And yes, the Reserve does make the government money. Every year the profits they earn on interest on debts issued to us are paid to .. us. It's a dumb cycle and makes no sense to most people, but the easiest way to think about it is instant inflation (debts issued) and instant deflation (debts destroyed/recycled). In return for this currency manipulation, Member Banks also make hefty profits not through Reserve debt purchases but through .. shall we say "Perks" of being able to manipulate the Reserve. en.wikipedia.org...

or from other investors, that would be wrong?

Other investors have to have money already created by either Congress or the Reserve .. so while we need them to buy the debt to complete the global economic cycle, they don't actually increase the amount of money in circulation (which is why foreign debt has few side effects besides the amount we have to spend servicing) Debts purchased by the Reserve cause inflation by devaluing the currency.

This is called Debt Monetization. en.wikipedia.org...

reply to post by Rockpuck


Thanks

By selling bonds, the US raises state debt.
This is what i meant, they can print money if there is not enough, but they have to sell bonds in order to raise capital, be it to investors or the federal reserve.

Sorry for the misconception, this is not my native language

Edit: mistake

Here's an article that says the payout to the investors will most likely speed up the foreclosures:
www.msnbc.msn.com...

“Living with the uncertainty of foreclosure can’t be a pleasant experience,” said Bank of America spokesman Jerry Dubrowski. “The sooner we can deal with that overhang the better for the economy.”

As per this comment, it reinforces what I stated earlier about BOA not caring about the home owners who are getting screwed. They only care about their investors and the money that will be put back into their pocket. They are substituting this admonition by referring to the economy.

BOA is run and supported by none other than a bunch of slithering snakes!

sounds like a good time to buy shares in BofA

Sell them when they rebound and make a pretty penny

reply to post by Afterthought


Love the spokesman's quote! I wonder if living with the uncertainty of having a JOB is pleasant for him?

Jeez. Sigh. Bigger sigh. Little sigh.
I dunno. I still say, let 'em collapse, and then carry on without 'em. I know how to plant and grow things, how to sew, how to care for children, how to fish, how to down trees, how to fashion them and windfall into lumber, how to design and frame a shelter, all with natural materials. I also know how to build a fire. Doesn't sound like such a bad lifestyle.

reply to post by Rockpuck

spot on dude

and besides, 8.5bil on the scale of things seems pretty standard.

Who controls the government?
Follow the money.

The SCAM here is that BoA is paying money to investors, not the people whose lives they ruined by allowing anybody to get a loan, forging documents, lying, etc.

See, it's okay to lie to regular people, just don't do it to investors.

Originally posted by Angry Danish
Who controls the government?
Follow the money.

The SCAM here is that BoA is paying money to investors, not the people whose lives they ruined by allowing anybody to get a loan, forging documents, lying, etc.

See, it's okay to lie to regular people, just don't do it to investors.

edit on 7/1/11 by Angry Danish because: (no reason given)

Number one source of income is the little guy who has a 401k with BofA shares in it...they are typically called investors.

It never ceases to amaze that so many of you here on ATS forget, or maybe just dont know that the same people who they are scamming, are the exact same people that own stock in the company. So at the end of the day, the little guy, as well as the medium and big guy, all benefit from the "SCAM" just to different degrees.

Im not saying that the SCAM is right, because I think it is bush league, but at the end of the day. The little guys wins a lot too and most of you are bitter for only what you see on the surface.

The only difference between some on ATS and the BIG guy, the BIG knows how to manipulate the system or just plain and simple, play within the rules of the game in most cases. The ATS people can play the same game, but some chose not to out of ignorance or lack of will.

I have made good money in the stock market by paying attention and I would venture to guess with about 5 hours of education a week for about 6 months and most ATS users could do very well AND BE ETHICAL about itby palying the markets.

Just my 2 cents.