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Deja Vu; Didn't I Write This One Before? First Posted In June.

|Includes: BAC, BWF, Citigroup Inc. (C), JPM

Are we actually on the brink of a banking disaster? I think the question to ask is how long will the banks be able to keep delaying foreclosures and keeping huge losses off their books. You see, it's actually a 3-1 hit on paper when a bank actually takes a mortgage off their books. Most mortgages post the principal balance, all that interest (usually a bit less than the original loan amount) over the 30 years. Now, of you post a loss, not only does the original principal balance get wiped off the books, so does the interest and then come the brackets in the sum of the original dispersed amount. Add all the other costs such as forced placed insurance, several year's worth of property taxes, legal fees, and let's not forget to mention how much it costs the bank to sell the home which has lost 200% or more in value. Let's think, hmmmm, how much money are we really talking about that's out there floating around or just fell into a black hole. Let's refer to this amount in an astronomical term (no pun intended), the bank's dark matter. Between all of the banks out there there's a whole bunch of dark matter. In fact, the books are so off the true potential gross revenue off at the least 100% and the net around 300%. Those numbers are hard to believe but in my opinion not too far from the truth. To start exposing all the real numbers to the shareholders right now would create tremendous panic and a banking armageddon. By the way, there may be a cure and that would mean a bunch of mergers or nationalization of the banking sector. Whatever the real story is, we will soon find out. The sSenate Banking Committee is getting very anxious right now. It's just that the biggest loans are the ones that are being hidden. Chase is probably one of the healthier banks, but Bank of America and their recent completion of the BAC Home Loan takeover, awarded them with all those lovely Countrywide loans. Wells Fargo another one in the cauldron. And Citigroup....."fogettabatit!" Baked are the banks. So look out, that will affect the markets globally. God Bless America!!Jeff the Genius