The Golden Truth: Bank of America = Enron Redux

Tuesday, October 19, 2010

Bank of America = Enron Redux

Pimpco and the NY Fed, among others, the NY Fed being the key piece to this, are now demanding that BAC buy back $47 billion in bad mortgages. Here's the news link: BAC: Look out belowwwww

It is likely that to the extent the Government and the Federal Reserve Bank decide to monetize this mortgage catastrophe, they will have to use Bank of America - seemingly the worst offender - as the "fall-guy." We know that Tim Geithner has a track record of not only not paying personal taxes, but rubber stamping the use of taxpayer money to bailout the fraudulent banking system. It is likely that is why he has not been sacked yet from the Treasury Office. They need a dope like him to sign the paperwork.

My advice: if you personally own any Bank of America stock, just get rid of it. If you are invested in a mutual fund that owns a large stake in BAC, get rid of that mutual fund. The fund manager is an idiot. Here are the largest fund complexes that own BAC stock: State Street, Vanguard, Barclays, Fidelity, JP Morgan, T Rowe Price, Axa, Bank of NY, Northern Trust, Janus.

Janus really raises my red flag because over the last 10 years Janus has a near perfect track record of having outsized positions in the biggest landmines of the decade. Hey - in the stock market - where there's smoke, there's a nuclear financial meltdown in process. Here' a link to the complete list of holders: LINK

9 comments:

AnonymousTuesday, 19 October, 2010
Dave, What's a good price to get into gold and silver contracts on this pullback?

Thanks!
Ricky T
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johnrandiTuesday, 19 October, 2010
did BAC announce falsified earnings yet?
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Dave in DenverTuesday, 19 October, 2010
Anonymous, look at a chart and pick some spots and leg in 25/25/25/25%. Or 1/3, 1/3, 1/3. The best you can hope to do is starting buying in and have gunpowder with which to average down.

I'm sure this correction will go deeper than I'm expecting and last longer, but who knows.
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AnonymousTuesday, 19 October, 2010
Paulson & Co. "Recovery" Fund's two largest holdings: C, BAC; also owns sizeable chunks WFC and JPM.

http://www.zerohedge.com/article/top-25-paulson-co-holdings
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AnonymousTuesday, 19 October, 2010
good plan dave. ill use yi and yg mini contracts
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TyroneTuesday, 19 October, 2010
But... but... but...
CNBS said to BUY IT!! (LOL)

You should probably be a buyer of Bank of America right now
I never thought I’d find myself typing those words. I’ve been a huge critic of Bank of America for years. I'm bearish on the financial supermarket model. I don't think the acquisition of Merrill Lynch is working out. I still don't understand the logic of buying Countrywide.

But Bank of America's recent decline—down almost 10% this week—is driven by fears that the bank could be hit with huge liabilities for faulty mortgage pools. And I’m pretty sure that is not going to happen. BWAHAHAHAHA
...
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JayhawkTuesday, 19 October, 2010
Good analysis going on over on the Kitco boards regarding junior miners and specifically the silvers.

https://www.kitcomm.com/showthread.php?t=67230

It's so hard to decide on which ones to go with-I like some of your picks too Dave.
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mabmanTuesday, 19 October, 2010
best description of the US foreclosure problem:

http://whispersfromtheedgeoftherainforest.blogspot.com/2010/10/intsy-bitsy-spider-impact-of-us.html

and a real life example:

http://gonzalolira.blogspot.com/2010/10/this-is-what-brian-and-ilsa-said-to.html
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BillWednesday, 20 October, 2010
Sprott gets licence to obtain silver..

http://harveyorgan.blogspot.com/2010/10/sprott-gets-licence-to-obtain.html
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.