IS IT OVER YET?” A hundred times a week I am asked this question. It is a question asked with grimness, mostly, but also with hope.http://images.investorplace.com/e_images/navl/BofA/navl_BofA_prem1.gif
But still my answer is the same: No. No, it is not over yet. BUT the opportunities we face today are the greatest I have seen in our lifetimes.
You see, at least one more shocking bankruptcy will rock our security, giving our confidence one more body blow and putting us on the mat.
That shock is the insolvency of the Bank of America.
Another from a different investor newsletter titled:
Dead Banks Walking
Fellow Investor,
The big banks plunged on Inauguration Day.
Citigroup, JP Morgan and Bank of America dropped about 20% on average. No bank stock is safe. In fact, key analysts are now saying the entire system is ruined. We’ve got a bunch of “dead banks walking,” ready to topple over and crush the U.S. economy."
Let’s hope not!
It is just a matter of time. The last three months has shown us that it doesn’t matter how much money the fed pumps into them. They have used up the 700 billion and are back looking for more. The ceo of BOA spend 1.22 million decorating his new office. They gave out 4 billion in year end bonuses (where else are you rewarded for losing over 15 billion dollars).
Citigroup has taken 45 billion in bailout money and just took delivery of a 50 million dollar jet. If things are so bad then why aren’t they flying commercial.
The only lesson they have learned is that they now have a blank check to keep on with their careless ways. We should have let them fail in September of 08. Money will not fix flawed thinking or behaviour.
Government has no money and never did.
It can only take it from some and give it to others and keep a chunk of that transfer to pay for administration (a net loss).
or
It can print it (the Obama method) which takes it from everyone who has some, by making what fiat money they have a little more worthless while keeping a chunk for administration (another net loss).
Every dollar Obama spends or prints, delays recovery.
"The only lesson they have learned is that they now have a blank check to keep on with their careless ways."
The story of welfare in all it’s forms is ever thus.