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.
Nothing will change without blood spilled.
ReplyDeleteThe 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...
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