I'm expecting a loss at Bank of America this quarter. Maybe saved by re-pricing some dead assets on their books.
The DJIA to about 1,500 and the NASDQ to about 3,000. Sad part it the only way for the to make commissions, thus it will happen.
This is the trickle.. look back to 2008 and be great full you got this.
Until then watch out below it a long way to go.
It will be however painful given the FEDS failure to act earlier.
Its all coming folks...
On a melt down the top 4 U.S. Bans combined BAC, C, and BNYM and JPM combined market caps as major custodian could not even cover 2 listed companies like Apple and Oracle. That's 2 securities market caps out of 5100 listed securities can not even be covered by the top 4 U.S. Banks?
The $125 Trillion Federal Reserve Induced run-up, they will be forced to close in the following manner: BAC will close its doors in about an hour. Citi Bank, JPM and BNYM 3 days tops. 125/1 Trillion leverage ratio no way these custodians can cover even with the FEDS help. The Federal Reserve knows it since they have 450 times the debt they had on their books in 2008.
Yellen what is happening ?? Hey is the Federal Reserve paying back that $4.5 Trillion the borrowed at 2.50% anytime soon??
compared to what is coming.
If you bought in 2002 you lost $60.00 a share, if you bought in 2005 you lost $40.00 a share, if you bought in 2007 you lost $15.00 a share. if you bought in 2014 last April you lost $2.00 a share...
You know the $250K to $350K mortgages that BAC took a 70% loss on. This time the losses will be much worse
It appears that there could be as much of $100 billion in deferred Compensation Options outstanding in BAC stock waiting for the magic price to be sold!. This alone will keep the stock down for years.
Remember Feds to big to fail??? we shall see the crooks retract that like interest rates hikes.
But due to interest rates being so low the new house values have risen and now Bank of America is giving mortgages out that are triple the amounts they loaned out in 2008. This all means that after a 8 year Federal Reserve induced rally, that Banks and Financials like BAC could crash in about a day!
The FEDS easy money put America right back to where it was in 2008. But now much worse. Those new home loans well they are not for $350K like the were in 2008. They are now for $700 to $1 million these banks will collapse in about a day. I could see $15.00 wiped away in about an hour of trading.
Well Bank of America is dead money and it has been and will continue to be dead money, cause when this $125 Trillion market cap run-up caused by the Federal Reserve POPS. The largest four custodian banks in the U.S. JPM, BAC, BNYM, and BAC well they don't have a combined market cap of $1 Trillion that's a 125/1 leverage ratio. This will be zero in an hour on the day that's coming folks.
No fret the Federal Reserve will make the profit margins worse by delaying a rate increase. Plus who really cares since the Federal Reserve will just print another $10 Trillion to make every thing look good. What's another $4.5 Trillion in new off balance debt, the new hidden national debt anyway.
Folks there is just not enough profit in 3.50% interest rates by the big box institutions, they just have way to much overhead. BAC could easily see $6 to $7 again as they chase away customers with new fees and deposit holders run away not being able to keep pace with Bank Of America's new minimal deposit amount of $5,000. RUN Don't Walk from this one.
Mortgages on new homes down. Mortgages on new overpriced high risk home loans up. Trading volumes and commission revenues may be off by 50% or more. I'm expecting a $1.25 per share loss at Bank of America.