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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (106941)	1/5/2012 6:32:52 PM
From: RetiredNow	Respond to of 149317

Analysts are heard animals. They don't stray from the consensus much. Right now, I think the contrarians on BAC are the correct ones. I used to be a CPA and know something about financial statements. When I look at BAC's and adjust for write-downs on toxic debt, their balance sheet implies insolvency. There have been articles written up on that, which I've posted here. Then when you add all the pending litigation that they are still working through and the carrying cost of houses that are taking forever to get through the foreclosure process, and the bad derivatives bets they've made with a notional value of $80 trillion...well, suffice it to say that bank is in serious doo doo. Their only way out is bankruptcy or a Fed willing to steal from you and me to paper over the smell. Either way, the Fed can only hide losses that large for so long, because it's not just BAC, it's all the top tier banks in this country and around the world. The Fed cannot win that game and when they lose control, it will make 2008 look like a walk in the park. Don't believe me? Take a look at spreads on sovereign debt in Europe. That will give you an inkling as to the true value of all of this toxic debt they keep floating. The US is only unique in that we have more ways to hide it, but hiding it doesn't make the debt more valuable.