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Thursday, August 25, 2011

BANK OF AMERICA WAS LYING – SHOCKING!!!

This is a bailout. Buffett is part of the US government. I’d like to see Timmy Geithner’s phone records for the last two weeks. I’d bet it would show a few phone calls between himself and his old buddy Warren. You can be sure that Timmy has guaranteed they won’t let Bank of America go under. Buffett’s investment is nothing but another part of the ongoing confidence game.
This $5 billion investment is chicken feed compared to how bad Bank of America’s balance sheet looks. Here is a link to Bank of America’s balance sheet:
http://finance.yahoo.com/q/bs?s=BAC
I tried to access Bank of America’s latest 10Q. I was shocked to find they haven’t filed their 10K for 2010 or their 10Qs for the first two quarters of 2011. How can a public company be 8 months into the next year and not submit their 10K for last year? That tells me everything I need to know about their books.
Here is the poop:
  • BAC has $222 billion of equity.
  • BAC has $1.5 TRILLION of current liabilities
  • BAC has $1.7 TRILLION of supposed assets (mortgages, credit card receivables, home equity loans, etc.)
  • If BAC had to mark those assets to market and had a proper allowance for losses, the $222 billion of equity would disappear in an instant. That is a fact. Their balance sheet is filled with toxic debt that will not be repaid.
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2 comments:

Anonymous said...

Nothing will change without blood spilled.

lmclain said...

The obama administration cannot stop the bleeding. They are pretty much out of tricks that will not immediately blow up in their faces, so NOW, they are down to begging private investors and the uber-rich to help out. Begging and offering sweet "you'll get richer later, we promise you" deals that we are not allowed to know about (it's for our own good -- remember that line). Perhaps the ultra-rich are beginning to see where all this is headed and are willing to risk a few billion to stave off the rising of "we, the people"....news flash --- it ain't gonna help...