Bank of America buying Countrywide

While I feel a bit sorry for these people, I can't help but wonder why they took on so much debt. I guess it was for greed..take out a loan you can barely afford and then flip it a few months later. The lenders are just as much at fault for not even checking that they could afford it.

It's a mess no matter which way you look at it and in the long run, the guy who doesn't carry much debt and pays on time will suffer the brunt of this fiasco

I've been running some numbers based upon banking capital needed to issue loans according to the Federal Reserve system, relative bank profits, and the percentage of mortgages that are in foreclosure.

Based upon current numbers, the banks should still be making exhorbinant profits, despite multi-billion dollar write-downs.

That tells me that the growing crisis in the finance industry isn't related to bank losses in the housing markets. It's related to a loss of capital coming from other markets. Most likely because foreign investment has largely turned away from the dollar as their reserve instrument, favoring a basket of currencies instead. The loss of foreign investment means that our banks no longer have the necessary capital to float their loans.

That means that the housing crisis is likely a concurrent problem, not "the" problem. It makes for a good cover story, preventing the panic run on the banks that would result once people realize that the banks no longer have the capital necessary to return customer deposits.

FYI - the UK eliminated it's laws requiring income verification for home buyers at around the same time that the US did. Their banks also began heavily promoting ARM's at the same as ours. Several of their finance institutions have recently closed their doors to investors, preventing investors from collecting their assets. That will be the next phase for some US institutions.

When something happens once, it's a random occurence. When it happens twice in an identical manner, it begins to resemble a plan. It's happening in the US and it's happening in the UK.

In the UK, the citizens have been opposed to merging their monetary system with the Euro becuase it means the loss of economic soveriegnty. However, a sharp decline in the UK's economy would likely convince many citizens that the best way to save themselves would be to merge with the Euro. It would be a dramatic victory for the banks who are working to install a single global economy.

I'm willing to bet real money that when the US economy faces total collapse, the solution offered by our so-called political leadership will be to merge our dollar into a "more stable" regional currency that will be sold to the American people as the only tangible solution to a potentially devastating economic depression. Our economic sovererignty will be given up in return for individual economic security. Score another victory for the globalist banks who comprise our privately owned Federal Reserve and want to see a single global economy under their control.

Shorebreak: The line of reasoning you are talking makes sense. It is also a very good reason for us to demand real ownership of our land. Our land,farm and businesses are now used to backup the falling dollar. When citizens lose their jobs they will begin to lose their homes, farms and businesses too. The one who have paid of the loans will be last. But with no income to because of nothing they could control when property taxes come do they will be evicted for not paying them. Many feel secure in having 401 k. well come sunrise many will see the 401 have fallen sharply. Only real estate allos wealth. Everything else is based on who has the land. Once the government and banks have the land it will restart the process of creating new serfs. Register and vote the land home farm or business you save may be your own.

Bofa is evil. I hope they fall on their face.

http://www.ripoffreport.com/reports/0/360/Rip...