waf76

Bank of America Doing Worse Than Citi?

BAC is gonna skyrocket. ITs still in better shape than C. The government owes them a favor after the Lewis-Bernanke-Paulson Merrill fiasco.

America's Banks: Are They Really Insolvent?

Banks are completely insolvent, it doesn't matter that they are cash flow positive. We are just postponing the inevitable. To blame mark-to-market accounting is like saying this is just an accounting issue when we all know that it isn't. Banks are receiving federal money that exceeds their market cap. This is ridiculous. We have to accept sunk costs and stop throwing good money at it. You wouldn't handle your personal finances in this matter. Think of it as if you were living beyond your means. Your income doesn't cover your expenses. To bridge the gap you are continually taking cash advances from your credit card and managing your debt financing by paying the minimum monthly payment to stay cash flow positive. What happens when you are no longer extended credit? How will you finance your debt?