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Wall Street Breakfast: Must-Know News

Believe it or not, China's CB needs cash. The People's Bank of China, China's highly-leveraged central bank, is in need of a capital infusion. It owns about $1T in Treasury and mortgage-backed debt - on a capital base of just $3.2B - the value of which is declining sharply on the heels of a strong yuan. It could, of course, print more money, but not without running the risk of stoking inflation. The predicament could prompt China to stop allowing the yuan to continue rising vs. the dollar, heightening its trade tensions with the U.S. ****LOOK OUT BELOW***

Interested in Bank of America? Consider the Preferred Shares

If BAC's board does not declare a dividend or fails to pay a dividend, holders of the preferred stock will not be entitled to a dividend that quarter. The preferred stock is non-cumulative. Any unpaid dividends will not accumulate, and won't be paid at a future date. WHAT HAPPENS THE NEXT QUARTER?" IF NO DIVIDEND, DO PREFERRED GET SHORT CHANGED AGAIN?

Is the U.S. Banking System Safe?

It was a well discussed fact for a number of years, that terrible loans were being freely handed out to any one buying a house/condo flippers etc. And while a few spoke out against the practice our leaders looked the other way. Maybe because they were getting the same loans. Now they want to do something about it.
It reminds me of the Savings and Loan crisis a few decades back. My how time flies. One of the regualtors wanted to step in an slow down/stop the bad practices, but the something five/Keating/ McCain stopped them and a year later the system failed. Oh well, expect more governament rules, more bail outs and in another decade, more of the same