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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: tdl4138 who wrote (58858)	4/20/2006 10:48:55 AM
From: shades	Read Replies (1) \| Respond to of 110194

Bank Of Amer Fincl Chief Sees Future Credit Costs Rising . By David Enrich Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Bank of America Corp. (BAC) expects to see its credit costs rise as more consumers struggle to pay off their loans, Chief Financial Officer Alvaro de Molina said Thursday. The climbing costs are expected to come in Bank of America's credit-card division, de Molina said on a conference call with analysts to discuss first-quarter results. That expectation prompted the Charlotte-based bank, the nation's biggest credit card issuer thanks to its purchase of MBNA Corp., in the first quarter to boost its provisions for future losses. "We fully expect to see some rise in credit costs ahead of us, but we don't know when," de Molina said. In the first quarter, credit costs were depressed by the steep drop in consumer bankruptcy filings, which followed last year's enactment of a law making it harder for people to wipe away their debts. The pace of bankruptcy filings is widely expected to gradually rebound, but de Molina said he wasn't sure when that would happen. De Molina also said Thursday that Bank of America will start being more aggressive in building up its deposit base. The company spent the second half of 2005 not competing for some deposits because intense competition was driving up prices and because the bank needed to stay beneath federal market-share caps in order to close its MBNA deal. "We expect to see a rebound in the growth trajectories," de Molina said. He also said Bank of America is on track or ahead of schedule in reaching its targets for cost-savings and synergies with the MBNA deal. So far, the company has eliminated about 2,000 jobs, mainly through attrition, de Molina said. -By David Enrich, Dow Jones Newswires; 201-938-2123; david.enrich@dowjones.com (END) Dow Jones Newswires April 20, 2006 10:13 ET (14:13 GMT) Copyright (c) 2006 Dow Jones & Company, Inc.- - 10 13 AM EDT 04-20-06

To: tdl4138 who wrote (58858)	4/20/2006 10:50:10 AM
From: John Vosilla	Read Replies (2) \| Respond to of 110194

The skyrocketing costs of construction puts a cap on price declines in many areas. It ain't going to help you if you own a 1200 sf $800k ranch in LA or San Fran where most of the value is in the land but it certainly will help if you own a newer 2500sf $140k house in Dallas or Houston.. That said I expect a condo collapse of 60-70% off the top in places like Vegas and parts of FL even without a big rise in interest rates. Now if interest rates rise quickly to near double digits I'd expect a similar plunge in bubble market single family as well.. What a wild ride it's gonna be<g>