Coming Financial Crisis Worse Than ’29?

[Westside]

The BO adminstration is showing themselves to come idiots. Today the most famous AA hire in American History is pushing for another $ 50,000,000,000.00 in stimulas for the country's infrastructure. This guy is really something else.

 

[DixieDestroyer]

UN's blueprint = dismantle the middle-class to more quickly build/complete the world government/NWO.

http://www.infowars.com/un-blueprint-dismantle-middle-class-build-world-government/


Edited by: DixieDestroyer

 

[Freethinker]

Didn't feel like starting a new topic so I'll dump this here.

Ever wonder where all this stimulus money is going? Well, some to an African genital-washing program.

This is truly DISGUSTING from numerous reasons.

 

[Paleocon]

Didn't feel like starting a new topic so I'll dump this here.



Ever wonder where all this stimulus money is going? Well, some to an African genital-washing program.



This is truly DISGUSTING from numerous reasons.

So in addition to feeding them, clothing them, and providing shelter for them we now have to teach them how to wash themselves. They are like children except they are full grown and never learn anything or get any smarter over time...oh, and they rape, steal, and murder a lot more than children.



Edited by: Paleocon

 

[white is right]

This may be the only way the working class or lower middle class can get a footing in the new economy.....Unemployed B.C. father of four playing dead dad's numbers wins $6.5m lottery

Module body

Thu Sep 30, 4:45 PM

By Cheryl Chan


After two decades of playing his dead father's lucky numbers, Richard Batitis finally hit the jackpot.

When the 47-year-old Maple Ridge man spent $19 of the last $20 in his wallet at a Mac's convenience store in Maple Ridge on Sept. 15 he had an uncanny feeling his luck â€" and his life â€" was about to change.

"It's all based on my dad's numbers. It took 20 years. There have been times I can't play the lottery because I have no money to play, but somehow on that day, everything worked out," Batitis said Wednesday as he claimed his winnings of $6.5 million from the Lotto 6/49 draw at the B.C. Lottery Corp. headquarters in Richmond.

"[My father] passed away in 1997, so I feel that my dad has sent me this blessing."

It's been a rough grind for the soft-spoken Batitis and his family â€" including four kids ranging in age from six to 14 â€" after he was laid off from his job at a manufacturing firm in Surrey last August.

The family has been renting the basement suite at his in-laws' house. While his wife works part-time, he has been a stay-at-home dad.

Money has been tight and, sometimes, the family has taken to not answering the phone in order to avoid bill collectors, he said.

"It's been really tough. You have a lot of bills to pay and sometimes we can't. But we survived somehow."

Batitis, who is originally from the Philippines, has been playing the lottery every week for 20 years, usually using his dad's lucky numbers or a variation.

A few months ago, he got four out of six numbers. Last month, he got five numbers correct and snagged $3,000.

When he claimed his winnings at the BCLC office at the time, he had a feeling his streak would continue.

"I told them, 'I'll come back,' and here I am," he said with a chuckle. "I knew it was coming."

Batitis checked the winning numbers online the night of the draw but kept the win secret from his family.

Three nights later, he casually asked his wife how long she plans on keeping her part-time job.

"She said, 'When you become a millionaire.' So I said to my wife â€" 'Yes, I am," recalled Batitis.

The pragmatic type, his wife didn't believe him, so he showed her the photocopy of his winning ticket. "I said, 'Don't scream,' but she did."

Batitis said he doesn't know whether it's fate or coincidence or his deceased parents looking out for him, but he believes they are happy for him.

"You love your parents so much and you dream of sharing something with them, but you can't because they're gone. Hopefully, they see me smiling."

His immediate goals are simple: pay off debt, and buy a car and a dream house with a swimming pool.

And now that he can afford passports for his family again, he is planning to take his family on a trip, maybe to Disney World.

But his priority is to make sure the money doesn't go to their heads.

And he still has another dream â€" despite his new-found riches.

"I am still dreaming of a normal, healthy, good life," he said.

chchan@theprovince.com Edited by: white is right

 

[FootballDad]

Naw, i's wood be's buyin' a gol' plated Bentley, ans lots of jewlry an' bling, then's hit da strip club an' makes it rains ans sheeeit!

 

[DixieDestroyer]

European Central Banks Halt Gold Sales

Published: Monday, 27 Sep 2010 | 4:27 AM ET
Text Size
By: Jack Farchy, Financial Times

Europe's central banks have all but halted sales of their gold reserves, ending a run of large disposals each year for more than a decade.

The central banks of the euro zone plus Sweden and Switzerland are bound by the Central Bank Gold Agreement, which caps their collective sales.

In the CBGA's year to September, which expired on Sunday, the signatories sold 6.2 tons, down 96 per cent, according to provisional data.

The sales are the lowest since the agreement was signed in 1999 and well below the peak of 497 tons in 2004-05.

The shift away from gold selling comes as European central banks reassess gold amid the financial crisis and Europe's sovereign debt crisis.

In the 1990s and 2000s, central banks swapped their non- yielding bullion for sovereign debt, which gives a steady annual return. But now, central banks and investors are seeking the security of gold.

The lack of heavy selling is important for gold prices [XAU=X 1315.6 --- UNCH (0)] both because a significant source of supply has been withdrawn from the market, and because it has given psychological support to the gold price. On Friday, bullion hit a record of $1,300 an ounce.

"Clearly now it's a different world; the mentality is completely different,"Â￾ said Jonathan Spall, director of precious metals sales at Barclays Capital.

European central banks are unlikely to sell much more gold in the new CBGA year, according to a survey by the Financial Times.

Although many central banks declined to detail their sales plans, the responses of some, along with numerous interviews with bankers and consultants, suggest it is unlikely there will be a return to the trend of the past decade, when CBGA signatories sold on average 388 tons a year.

The central banks of Sweden, Slovakia, Ireland and Slovenia said they had no plans to sell, while Switzerland reiterated a previous statement to the same effect.

The CBGA was first signed after gold miners protested that central banks' rush to sell was depressing prices.

In previous years signatories haggled for individual allowances to sell under the CBGA, but the most recent renewal of the agreement in 2009 contained no such quotas, according to Darko Bohnec, vice governor of Slovenia's central bank.

http://www.cnbc.com/id/39376353

Edited by: DixieDestroyer

 

[white is right]

Did this guy mess with the wrong people,even "Uncle Bernie" didn't get such a harsh financial penalty.....
More Reuters Results for:
"French rogue trader sentenced"

* Reuters Station Support
Tue, Apr 27 2010
* French bank says could discuss rogue trader fine
2:15pm EDT
* REFILE-TIMELINE-Ex-SocGen trader Kerviel found guilty
4:12am EDT
* UPDATE 1-FACTBOX-Kerviel joins rogue traders' gallery
Tue, Oct 5 2010

Read

1. Hungary clears up after toxic spill, rivers at risk | Video
12:51pm EDT
1
2. UPDATE 2-Logitech unveils first gadget for Google TV
6:14pm EDT
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3. How Republicans could block healthcare reform
5:29pm EDT


Discussed

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Super-rich investors buying gold by the ton
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Health reform to worsen doctor shortage: group
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Racial predatory loans fueled U.S. housing crisis: study

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Tue, Oct 5 2010

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* Kerviel's fine the size of 20 Airbus A380s
Tue, Oct 5 2010

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* Stocks »
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Stocks

Societe Generale
SOGN.PA
€43.17
+0.84+1.98%
10:36am EST

Wed Oct 6, 2010 2:15pm EDT

* Government joins debate over trading scandal verdict

* Says SocGen should consider dropping its 4.9 bln euro fine

* Ex-trader Kerviel "crushed" by sentence

By Nick Vinocur and Lionel Laurent

PARIS, Oct 6 (Reuters) - French bank Societe Generale (SOGN.PA) said on Wednesday it was open to discussing its claim for 4.9 billion euros in damages against ex-trader Jerome Kerviel as public indignation grew over his sentence.

Kerviel was sentenced on Tuesday to at least three years in prison and ordered to pay his former employers the fine -- equivalent to $6.8 billion -- in a court ruling that lawyers in France and abroad have described as particularly harsh.

SocGen's head of communications said the value of the fine Edited by: white is right

 

[white is right]

I guess this isn't just an NBA thang....

Also will Jason Kidd still fight for his first love....Braxton files for second bankruptcy in LA

Module body

1 hour, 11 minutes ago

By Anthony Mccartney, The Associated Press
ADVERTISEMENT

LOS ANGELES, Calif. - Toni Braxton has filed for bankruptcy a second time, citing millions of dollars in debt and financial problems exacerbated by a heart condition that forced to cancel a series of Las Vegas shows.

The filing will likely result in the six-time Grammy Award winner having to sell some of her assets to pay off debts listed in court records as ranging between $10 million and $50 million.

Her attorney, Debra Grassgreen, said in a statement the filing will allow Braxton to pay off tax debts, sell heavily indebted property in Atlanta and still care for her children.

Braxton has had high-profile health issues in recent years. In 2008 she was forced to cancel a series of Las Vegas shows after experiencing chest pains that were later diagnosed as microvascular angina. Later that year, she performed on the ABC series Dancing with the Stars but missed the finale while recovering from removal of a benign breast tumour.

Grassgreen said the Vegas show cancellations left Braxton, 43, saddled with debts from which she could not recover.

The singer and her company Liberty Entertainment filed for bankruptcy Sept. 30, court records show. The filing was first reported Thursday by celebrity website TMZ.

"This was a very difficult decision for Ms. Braxton," Grassgreen said. "However, after months of trying to work out an acceptable arrangement with her principal creditors, she determined that the only way to assure that she could meet her tax obligations and provide for her two small children was to commence these bankruptcy cases."

Braxton has assets worth up to $10 million, her filing states.

She previously filed for bankruptcy in 1998.

Grassgreen's statement said Braxton is currently in good health.

Known for songs such as "Un-Break My Heart" and "Breath Again," Braxton sued Lloyd's of London, which had insured her for the Las Vegas performances in case they had to be cancelled. The insurer denied her claim, stating she had a pre-existing condition, and court records show the case was dismissed on Sept. 20.

Braxton's spokeswoman Jennifer Mercer said the case was "settled to the satisfication of all parties."

Grassgreen said the bankruptcy will not prevent Braxton from future performances.

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[DixieDestroyer]

The free-fall into the abyss continues...

Jobs crisis extends to unemployed, lawmakers
Economy loses 95,000 jobs as government layoffs exceed private hires

WASHINGTON (AP) -- There's no relief from the jobs crisis -- for everyday Americans or lawmakers facing the midterm elections.

The most rampant layoffs of teachers and other local government workers in nearly three decades more than offset weak hiring in the private sector in September, resulting in a net loss of 95,000 jobs. Unemployment remained stuck at 9.6 percent.

The jobless rate has been at or above 9.5 percent for a year and two months, the longest stretch since the Great Depression. The "underemployment" rate adds part-time workers who would rather work full time and jobless people who aren't actively seeking work. It now exceeds 17 percent.

The glum economic picture came Friday in the Labor Department's last monthly jobs report before the November election. Voter frustration over jobs threatens to cost Democrats control of the House and perhaps the Senate.

"We have to keep doing everything we can to accelerate this recovery," President Barack Obama said. "The only piece of economic news that folks still looking for work want to hear is, `You're hired.' And everything we do is dedicated to make that happen."

The combination of limp hiring by businesses and more governments layoffs expected means unemployment could rise to 10 percent again this year or next. When Obama took office in January 2009, the unemployment rate was 7.7 percent.

Republicans pointed to the weak jobs report as evidence of Democrats' failed economic policies. They argued that the $814 billion stimulus has contributed to bloated federal deficits but done little to create jobs. Most economists say job losses would have been deeper and unemployment higher if not for the tax cuts and additional government spending.

"As Americans, we have to decide: Do we want another two years of job-killing policies out of Washington?" said House Republican leader John Boehner of Ohio.

In an Associated Press-GfK poll taken in September, 92 percent of Americans said the economy was an extremely or very important issue. And 79 percent said the economy was in bad shape, compared with 15 percent who said it was healthy.

September was the fourth straight month in which the economy has lost jobs. Layoffs of government workers, including temporary Census Bureau employees, drove the decline. Most census jobs have already expired, but others have lasted longer.

In all, the economy shed 159,000 jobs in the public sector, including 76,000 at the local level, most of them teachers. It was the largest cut by local governments in 28 years.

One reason the spike is showing up now is that teachers who were notified of their layoffs when school ended in spring fell off the payrolls in September. That's the case for Georgia middle school teacher Candy Murdock, a mother of 13.

Despite seven years of experience and certifications in Spanish, biology and English for speakers of other languages, Murdock was laid off in the spring.

"I can't just retire now like a lot of people are doing, because I taught part-time for so many years when my kids were young, and it doesn't count toward retirement," said Murdock, 56. "And I just can't go back and retrain. I already did that once."

More layoffs are expected from state and local governments despite a $26 billion aid package that Obama signed into law in August. The recession devastated state and local budgets.

Without any big rise in sales, companies are not adding jobs fast enough to make up for the losses. Private businesses added only 64,000 positions last month, only about half what it takes to keep up with the growing work force.

There are now 14.8 million people officially unemployed in the United States, and even that figure doesn't capture the suffering. People out of work who have stopped looking for jobs are not counted as unemployed.

Adding those people plus others who are working part time but would prefer full-time jobs, nearly 27 million are "underemployed" -- 17.1 percent of American adults, up from 16.7 percent in August and close to a record.

The persistent jobs crisis makes it all but certain the Federal Reserve will act at its Nov. 2-3 meeting to try to rejuvenate the economy. The Fed will likely buy billions more in government debt to further drive down rates on mortgages, corporate loans and other debt. The idea is that even cheaper loans might get Americans to increase spending and boost the economy.

That prospect lifted stocks on Wall Street. The Dow Jones industrial average closed above 11,000 for the first time since May. It finished up nearly 58 points to 11,006.

On Main Street, however, the outlook for the economy hasn't brightened much in more than a year, even though the recession technically ended and the economy began slowly growing last summer.

Congress failed to pass an extension of tax cuts, enacted in 2001 and 2003 under President George W. Bush, before leaving town for the midterms. As it stands now, most Americans would face a tax increase Jan. 1.

In the private sector, hiring in September was led by 34,000 new jobs at bars and restaurants, but those tend to pay less than government work and offer fewer benefits, if any.

Factories cut 6,000 jobs last month. Construction companies sliced 21,000. Both industries tend to pay higher wages than jobs in the service sector, such as work at chain stores. Retailers added about 6,000 positions.

The recession wiped out 7.3 million jobs, the most of any downturn since World War II, and economists say it will take at least until the middle of this decade to recover them.

"The areas where private job growth was the strongest are industries that aren't usually considered high-quality employment," said Michael Feroli, economist at JPMorgan Chase Bank. "The labor market remains stuck in the mud."


http://finance.yahoo.com/news/Economy-loses-95K-jobs-due-to-apf-2702604006.html?x=0&.v=17

Edited by: DixieDestroyer

 

[DixieDestroyer]

The fiat dollar continues its downward spiral...

Dollar fall sparks stability warnings

By David Oakley and Peter Garnham in London and Michael Mackenzie in New York

Published: October 14 2010 19:55 | Last updated: October 14 2010 19:55

The dollar tumbled against most major currencies on Thursday, prompting warnings that the weakness of the world's reserve currency could destabilise the global economy and push other countries into retaliatory devaluations to underwrite their exports.

Increasing expectations the Federal Reserve will pump more money into the US economy next month under a policy known as quantitative easing sent the dollar to new lows against the Chinese renminbi, Swiss franc and Australian dollar. It dropped to a 15-year low against the yen and an eight-month low against the euro.

The dollar index, which tracks a basket of currencies, reached its lowest level this year.

A senior European policy-maker, who asked not to be named, said a further aggressive round of monetary easing by the US Federal Reserve would be "irresponsible"Â￾ as it made US exports more competitive at the expense of its rivals.

Simon Derrick, chief currency strategist for BNY Mellon, said: "In narrow terms, the US is winning the currency wars as a weaker dollar will help its economy, but it could damage the other big economic blocs of China, Japan and Europe."Â￾

The dollar's fall was given fresh impetus after the Monetary Authority of Singapore surprised the market when it tightened policy by widening the trading band for its currency, allowing it to appreciate. The move by the Singapore authorities, responding to fears over inflation, helped push up other Asian currencies.

Russia's finance minister Alexei Kudrin, in a meeting with European Union officials, blamed the US â€" and others â€" for global currency instability.

He said one reason for exchange rate turmoil "is the stimulating monetary policy of some developed countries, above all the United States, which are trying to solve their structural problems in this way"Â￾.

Commodities, which are mostly traded in dollars, were boosted by the US currency's slide. Copper hit a two-year high of $8,490 per tonne at one point, while gold surged to a record of $1,387 per troy ounce.

The twice-yearly US Treasury currency report, to be published on Friday, could ramp up the debate, although it is likely to stop short of accusing China of manipulating its currency.

However, turbulence was contained in the currency markets, as equities are benefiting from expectations of more QE. Investors hope that the fresh flood of money will find its way into stocks.

The QE factor and the strong start to the US earnings season propelled the FTSE All World Index to highs last seen around the time of the collapse of Lehman Brothers in September 2008. This index has risen 20 per cent since the start of July.

Robert Parkes, equity strategist at HSBC, said: "The equity bull run, which started in March last year, will go on."Â￾

US inflation expectations for the next 10 years also continued to climb, reaching 2.09 per cent, up from 1.90 per cent in the past week.

The dollar fell to Rmb6.6493 against the Chinese renminbi, dropped to SFr0.9461 against the Swiss franc and fell to $0.9993 against the Australian dollar, just shy of parity. The Canadian dollar reached parity with the US currency, last seen in April. The US dollar fell below Y81 against the Japanese yen and tumbled to $1.4121 against the euro. The dollar index dropped nearly 1 per cent at one point to 76.259, its lowest since December.

http://www.ft.com/cms/s/0/5505a7f0-d7c2-11df-b478-00144feabdc0.html

Edited by: DixieDestroyer

 

[Michael]

An article entitled "Tent City America "

A series of videos that puts the American Super Depression into stark reality, a reality that is hidden from world view as the American government continues to sell lies about its economic Summer of Recovery, in an ever more desperate attempt to sell unsellable debt.

http://mat-rodina.blogspot.com/2010/10/tent-city-america.html

 

[Jimmy Chitwood]

<DIV ="asset- entry-">
<DIV =asset->


Wiedemer: Inflation on the Way Despite Deflation Fears



McDonalds to raise prices
General Mills Signals Faster U.S. Food Inflation.

and a firsthand account from a blog i frequent that appears to add more evidence to what i've been noticing. food prices are rapidly increasing ...

"I noted with interest that the Wal-Mart I shop at had cleared the shelves of "Great Value" brand coffee in 39 oz cans for about 2 weeks. Today the new can appeared, with the following differences: 1.) Can is now 33.9 oz, down from 39 oz. Also conspicuously missing is the conversion of 2lb, 7oz therefore no comparison in pounds is easily made. 2.) Price for this smaller can is up from $9.88 to $10.48, by my rustic math an approximate 20% increase! 3.) Contents of can are no longer 'Premium Columbian' Decaffeinated. Now labeled '100% Classic Decaf'"

 

[Michael]

An article entitled " The tunnel people of Las Vegas: How 1,000 live in flooded labyrinth under Sin City's shimmering strip"

http://www.dailymail.co.uk/news/article-1326187/Las-Vegas-tunnel-people-How-1-000-people-live-shimmering-strip.html

 

[Riddlewire]

An article entitled " The tunnel people of Las Vegas: How 1,000 live in flooded labyrinth under Sin City's shimmering strip"

http://www.dailymail.co.uk/news/article-1326187/Las-Vegas-tunnel-people-How-1-000-people-live-shimmering-strip.html

And I bet every single one of them voted for Harry Reid, without even realizing it.

 

[Jimmy Chitwood]

the monster from Jekyll Island is back ... and this time, they aren't even trying to hide.

100 years later, they're going to celebrate and rub it in the public's faces.

Well isn't this cute?

Just days after the Federal Reserve will announce it has launchedQE2,the Fedwillhold a major conference atJekyll Island, celebrating the secret meeting held there 100 years ago that resulted in the creation of the Fed.

The island is in the Atlanticoff the coast ofGeorgia.

In November 1910, Senator Nelson W. Aldrich and Assistant Secretary of the Treasuryt A.P. Andrews, and other top financiers, arrived at the Jekyll Island Club to discuss monetary policy and the banking system. The secret meetings led to the creation of the Federal Reserve ...

read the full article at the link.

 

[DixieDestroyer]

Let's hope these newly elected Republicans don't go NeoCON/Globalist shill & (instead) support Dr.Paul's Constitutional efforts...

Ron Paul vows renewed Fed audit push next year

Fri Nov 5, 2010 3:40am IST

By Andy Sullivan

WASHINGTON, Nov 4 (Reuters) - U.S. Republican Representative Ron Paul on Thursday said he will push to examine the Federal Reserve's monetary policy decisions if he takes control of the congressional subcommittee that oversees the central bank as expected in January.

"I think they're way too independent. They just shouldn't have this power," Paul, a longtime Fed critic, said in an interview with Reuters. "Up until recently it has been modest but now it's totally out of control."

Paul is currently the top Republican on the House of Representatives subcommittee that oversees domestic monetary policy, and is likely to head the panel when Republicans take control of the chamber in January.

That could create a giant headache for the Fed, which earlier this year fended off an effort headed by Paul to open up its internal deliberations on interest rates and monetary easing to congressional scrutiny.

Paul, who has written a book called "End the Fed," has been a fierce critic of the central bank's efforts to boost the economy through monetary policy.

"It's an outrage, what is happening, and the Congress more or less has not said much about it," he said.

Paul said his subcommittee would also push to examine the country's gold reserves and highlight the views of economists who believe that economic downturns are caused by bad monetary policy, not the vagaries of the free market.

Global organizations like the International Monetary Fund also will come under scrutiny, he said.

"Eventually we're going to have monetary reform. I do not believe the dollar can be the reserve standard of the world," said Paul, who has called for returning the United States to a currency backed by gold or silver.

Many economists say that the Fed's decisive actions during the 2008 financial crisis prevented the deep recession that followed from turning into a depression. But grassroots outrage over the bank bailouts and other Fed actions helped propel many Republican candidates to victory in Tuesday's congressional elections -- including Paul's son, Rand Paul, who will represent Kentucky in the Senate.

"With a lot of new members coming and the problems getting worse rather better, there's going to be a lot more people who are going to be looking for answers," Paul said.

http://in.reuters.com/article/idINN0422739520101104

Edited by: DixieDestroyer

 

[Highlander]

Bank of America on the verge of collapse?

<h1>Bank of America Edges Closer to Tipping Point
</h1>


<div id="story_">
<cite>
By Jonathan Weil</span> - Nov
3, 2010 7:00 PM MT
<no>Thu Nov 04 01:00:00 GMT 2010<o></o><o></o><o></span>
</cite>
</div>



<div>Bloomberg
Opinion





Jonathan Weil






</div>
<div id="story_">









It was only last April that <a href="http://www.bloomberg.com/apps/quote?ticker=BAC:US" target="_blank">Bank of
America Corp.</a> was making fools out of the doomsayers who had
called for its nationalization a year earlier. Taxpayers had
gotten their bailout cash back. Investors who bought its shares
at the bottom were making a killing. Government leaders lauded
the company's rescues, both of them, as a great success.


Now the bank may be on the verge of trouble again. Its
stock has fallen 41 percent since April 15.
Mortgage-bond
investors are demanding untold billions of dollars in refunds.
The foreclosure fiasco is metastasizing. A member of the
Troubled Asset Relief Program's oversight panel, AFL-CIO
attorney Damon Silvers, openly worried
at a hearing last week
about the risk that Bank of America might need another bailout.


A few more months like the last one, and we may be wishing
Bank of America had never returned its $45 billion of TARP
money.


You wouldn't know there's anything wrong with Bank of
America by an initial look at its balance sheet. The company
showed common shareholder equity, or book value, of $212.4
billion as of Sept. 30. And its regulatory capital ratios have
risen steadily throughout the year.


Tipping Point


Judging by its shrinking stock price, though, investors are
acting as if Bank of America is near a tipping point. Its market
capitalization stands at $115.6 billion, or 54 percent of book
value. That's the second-lowest price-to-book ratio among the 24
companies in the KBW Bank Index, and well below
the 76 percent
ratio the company was at in October 2008 when it landed its
first round of TARP dough. Put another way, the market is saying
there's a $96.8 billion hole in Bank of America's balance sheet.


When I asked Jerry Dubrowski, a Bank of America spokesman,
about the disparity, he said: "I'm not going to comment on the
book value and the stock price."Â￾


It may be the shares are a bargain at $11.52, if the
company's books are right. Another plausible scenario is that
Bank of America's management, led by Chief Executive Officer
Brian Moynihan, has lost so much credibility
with investors that
the stock's decline might start feeding on itself.


The problem for anyone trying to analyze Bank of America's
$2.3 trillion balance sheet is that it's largely impenetrable.
Some portions, though, are so delusional that they invite
laughter. Consider, for instance, the way the company continues
to account for its acquisition of Countrywide Financial, the
disastrous subprime lender at the center of the housing bust,
which it bought for $4.2 billion in July 2008.


Goodwill Purchase


Here's how Bank of America allocated the purchase price
for
that deal. First, it determined that the fair value of the
liabilities at Countrywide exceeded the mortgage lender's assets
by $200 million. Then it recorded $4.4 billion of goodwill, a
ledger entry representing the difference between Countrywide's
net asset value and the purchase price.


That's right. Countrywide's goodwill supposedly was worth
more than Countrywide itself. In other words, Bank of America
paid $4.2 billion for the company, even though it thought the
value there was less than zero.


Since completing that acquisition, Bank of America has
dropped the Countrywide brand. The company's home-loan division
has reported $13.5 billion of pretax losses. Yet Bank of America
still hasn't written off any of its Countrywide goodwill.


Dubrowski, the company spokesman, declined to comment when
I asked him why not. In its latest quarterly report with the
SEC, 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.


No Surprise


Combine that with Bank of America's reaction to the robo-
signer scandal. (Working on it! Wait, halt
foreclosure sales!
No, restart them! Whoops, still checking records!) Add in the
$141.6 billion of home-equity loans on Bank of America's books,
the real value of which is unknown. And it should be no surprise
that the company's stock price has been plunging.


So, does Bank of America need to issue new common stock to
raise capital? Its executives say no. They point to the usual
regulatory benchmarks, as well as their own calculations of
tangible common equity. This is a bare-bones capital gauge,
showing a company's ability to absorb future losses, which
excludes preferred stock and most intangible assets.


Using Bank of America's $129.5 billion figure for tangible
common equity, though, that's still about $14 billion more than
the company's market cap. So the market isn't
just discounting
the intangibles, most of which don't count in regulatory
capital. Investors are wary of the company's other numbers, too.


Artifice of Strength


The tough part for Bank of America executives is that the
company's future may be out of their hands. Writing off more
worthless assets or boosting reserves for future losses might
help their credibility. (The bank wrote off $10.4 billion of
goodwill unrelated to Countrywide last quarter.) Or, the market
might perceive such moves as a sign that the artifice of
strength is broken. It's hard to tell.


As for the government's too-big-to-fail guarantee, it's
probably still there. But who knows? Republicans have won back
the House. The answer is up in the air.


The only certainty is there is none, aside from the
knowledge that Bank of America's top executives have no idea
what goes on inside the bowels of their company. For all we know
the stock could double, or be a donut. The fate of the financial
system hangs in the balance. Once again, we're all on the hook.
</div>http://www.bloomberg.com/news/2010-11-04/bank-of-america-edges-closer-to-tipping-point-commentary-by-jonathan-weil.html

Edited by: Highlander

 

[qj]

B of A is going down.

 

[qj]

Just as sure as the sky is blue, the phony Feddy fraudy dollar is going down, down, down in purchasing power. We are in the end stage of congestive fiat "money" failure disease. And just like the health care folks pump the dying congestive heart failure (CHF) patient full of drugs at the bitter end to try and prop the guy up for a few days, weeks or months more, the bankster gangsters are wedded to pumping and dumping phony QE2-3-4... "money" in ever increasing amounts in a vain attempt to prop up the zombie banks and the dead man walking U.S. economy. It's QE to infinity. Let's face the fact that the current monetary system has finally killed us economically under an ocean of greed, debt and fraud. And the bankers want to continue this charade! What a (bad) joke!

We need to take the money power away from the banksters and place it under the authority of Congress where it belongs. We need to fundamentally change the system and create interest-free money for the good of the people and not for the good of the few banksters. We need to create a new system similar to Pennsylvania's Pre-revolutionary monetary system. Only then will we be able to turn this failure into something positive.

The current system is going to collapse, perhaps completely in MAD MAX fashion. There's no stopping that train going over the cliff. However, we cannot let the banksters resurrect another fraudy, phony debt-based, banker-run system on the other side of this disaster. We need to be ready when it goes down, and it's going down, down just as sure as the sky is blue and the grass is green. In the meantime, get ready. Get plenty of food, supplies, protection and trade items to ride it out.

 

[Observer]

We need to fundamentally change the system and create interest-free money for the good of the people and not for the good of the few banksters.  We need to create a new system similar to Pennsylvania's Pre-revolutionary monetary system. 

In the give-and-take of economics, what were the disadvantages of the old Pennsylvania system in its time? What would be the disadvantage of such a system in the present time on a regional or national scale?

 

[qj]

We need to fundamentally change the system and create interest-free money for the good of the people and not for the good of the few banksters. We need to create a new system similar to Pennsylvania's Pre-revolutionary monetary system.

In the give-and-take of economics, what were the disadvantages of the old Pennsylvania system in its time? What would be the disadvantage of such a system in the present time on a regional or national scale?

Great question. We do know what the debt-based, private bankster run system has done to us. Germany, like the U.S. today and at the time in the early 1930's was a complete economic basket case. When the NAZI's (National Socialists) got into power, they ditched the bankster run monetary system and started issuing debt free money to build up Germany. Within 4-5 years, Germany was a monster economic power and it took the might of Russia, England and the U.S. to subdue it in WWII. So, Germany in the 30's would be a good, recent example of what can happen in terms of the economy run on government issued, debt free money. In terms of the old Pennsylvania monetary system, Ben Franklin traveled to England and commented on how much poverty and homelessness there was in Britain and how there was none of this in his Pennsylvania. So I really do not see any real disadvantage to issuing debt free money by the government as opposed to greedy banksters. In any system, you need competent leadership that has integrity for it to be successful, and that includes a system with gold/silver backed money. Ben explained to the Brits that the Penn. Gov't issued debt free scrip, but only enough to really represent the amount of commerce going on in the Colony to avoid inflation. Well, the banksters in England would have none of that, so the colonies were forbidden to continue with their scrip system. Franklin later said this was the real cause of the Revolution, for after the scrip was removed, Pennsylvania and the other colonies fell into depression and poverty, which is a creature feature of the bankster run debt based money system.

Andy Jackson later tangled with the banksters and they tried to assassinate him when he was President. Both pistols failed and he lived. By the eternal God, Jackson was able to route out the evil (central) banksters. He also warned the U. S. these charlatans would be back. Jackson warned, "The bold effort the present [Bank of the United States]
had made to control the government, the distress it had wantonly
produced ... are but premonitions of the fate that awaits the American
people should they be deluded into a perpetuation of this institution or
the establishment of another like it."

In the civil war, Abe Lincoln said he had 2 enemies, the Southern Army in front of him and the banksters behind him. He said the banksters were much more dangerous than the rebel army. The banksters wanted to print money up out of thin air and loan it to Lincoln at usurious interest rates of 20+ percent to enslave the U.S. to the banksters. Instead, Lincoln issued debt-free "greenbacks" to fund the Civil War, and the nation avoided becoming a debt slave to banksters. Lincoln was rewarded with a bullet in the brain.

President Garfield also knew about the bankster scam. He was killed within a few months of taking office.

Same with Kennedy. Kennedy wanted to avoid the banksters and issued US Silver Certificate Notes (Not fraudy Federal Reserve Notes--check the top of your "dollar" bill) against the stockpile of silver held by the U.S. Treasury. Well, soon after, Kennedy was executed rather brutally in broad daylight on the streets of a major U.S. City. The message to the rest of the politicos was very clear: "We are in charge here and you plebes better stay in your place if you know what's good for you!" Kennedy was the last independent president we had.

Now the greedy banksters have taken over, poisoned the system and destroyed us. The only bright spot has been North Dakota. It has been cushioned from the blow because it has a state owned bank that serves the needs of the people of North Dakota rather than the greedy fraudsters on Wall Street and in Washington. Perhaps when the system goes down, the country will break up into sections, and each will develop their own monetary system. I can really see big-time resistance to the banksters if they try to resurrect another banker run system on the other side.

Right now, we have a 1 party system, the bankster party which controls the Republicrats and Democans. The left-right paradigm is a joke and a scam which is used to destract the American people from the true problem of having our money issued as debt by greedy banksters.

Here is some further reading:

http://21stcenturycicero.wordpress.com/fraud/colonial-scrip/ (Great article on colonial scrip)


http://www.rense.com/general86/pres.htm (Presidents murdered)

http://www.thehiddenevil.com/fed.asp (The banksters)

 

[Freethinker]

Great post qj, very interesting and informative summary of the banking system in the US. I forwarded it to some friends.

 

[qj]

Great post qj, very interesting and informative summary of the banking system in the US. I forwarded it to some friends.

Thank you for the compliment, Freethinker. I pray that all of us here are able to prepare for the coming storm (it's already here). Thanks for spreading the word by sending my message to others in your email list. That's the very thing we need to do, and it warms my heart that someone like you is working to improve the life of all Americans, black, white, red, green, whatever. We really need to fix the monetary system in this country. That will take us, the regular folks, to make it happen. Right now, the banksters own the traditional institutions and their leaders which is sad. Greed is the enemy. We need to talk about it. Perhaps we can establish and support local scrip systems and lobby for a new monetary system at the state level. We need the really smart, local people to study the scrip systems of the past, including the NAZI's and Ben's currency system and then perhaps implement an updated system that will help the citizenry of today. If we must have debt-based money, perhaps we here in the forum can talk to our local and state reps to get a state bank like North Dakota has. With all the people in severe distress, I really think some positive changes can be made. As Rahm Emmanuel said, "Don't let a could crisis go to waste." However, unlike Rahm and his crew (system run Dems and Repubs), we need to use this crisis to create a more equitable monetary system.

One more think about Lincoln. People do not give him credit, especially Southerners, but he knew the true nature of the split between North and South. Yes, the slavery issue was huge and helped drive a wedge between Southerners and Northerners. Yet, slavery was a dying institution and would have disappeared naturally within another generation or 2. The trade issue was also huge, some feel as big or bigger than the slavery issue (I share this belief). The Southerners felt abused by the trade policies in Washington and felt the North was abusing the South with tariffs passed in Washington, D.C. However, the other big issue not talked about is that the foreign banksters wanted to split the growing power of America, especially an America that rejected their central banking scam--see info on Andy Jackson. So, the foreign banksters agitated for the split through their agents and allies in the U.S. The banksters longed to split the USA into 2 and then fund both sides in any resultant war. The loans would be at high interest and help enslave Americans to the banksters. Lincoln knew this, hence the comment about the banker enemies in the rear. He, like Andy Jackson, was against a central bank. So, Lincoln saved the nation from becoming slaves to the bankers in my opinion.

 

[Riddlewire]

Interesting find from one of my favorite Youtube posters.

Video

It's probably impossible to accurately quantify the drain on our economy from Mexican illegals, but the socialist UK happily reports the numbers.