not see the hand writing on the Wall..., Street Banksters obit..
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Since the acquisitions of Countrywide by BKofA, WAMU by Chase, and Wichovia by Wells, these Big Bad Banks have been bailed out with Trillions of US dollars.While they paid themselves huge salaries and bonuses, it was not enough.
And, unlike China, we did not demand that they loan the GD money back out to U.S.
As the Pretty Woman said: "Mistake! Big mistake!!"
They also are the largest RE mortgage "originators", "servicer" and foreclosers.
We have been arguing that, much like the land line phone companies, they were "technically" bankrupt.
The problem is not that they will fail, they have already done that. It is that they are about to take U.S. with them.
They are no longer "originating" the number or the quality of RE mortgages that this country MUST have in order to generate the jobs that WE MUST have.
They also have not purged themselves of all of the bad ARMs and subprimes that their bought mortgage cos created, they have not foreclosed on all of them, and they are now discounting the REO sales prices by about US$ 20,000 per home in AZ.
They are paying cash to sell to all cash buyers to raise "cash".
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That is the Bad News.
The Really Bad News is that the small, community banks, SnLs and CUs that made local construction and commercial loans are in even worse shape
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BANK OF AMERICA - NEW LOW
= stock nearing $5 danger zone
http://money.cnn.com/2011/11/29/markets/bofa_stock/index.htm?iid=Lead
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S&P downgrades dozens of banks
37 financial institutions downgraded by S&P
http://money.cnn.com/2011/11/29/news/companies/bank_ratings_downgrades_sandp/index.htm?iid=EL
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