Bank of America’s Death Rattle

Bank of America’s Death Rattle

Bank of America Corporation, which owns Merrill Lynch and Bank of America N.A. (the actual bank), moved almost $15 trillion in derivatives from Merrill Lynch’s books to BofA’s books. Bank of America, unlike Merrill Lynch, is insured by the FDIC because it is a deposit bank.

Senate Democrats penned an angry letter to Ben Bernanke this week over the Federal Reserve’s lenience with Bank of America’s recent balance sheet maneuvers. The bank, they claim, is putting taxpayers at risk of cleaning up after it again, by moving trillions of dollars in derivatives from Merrill Lynch to Bank of America.

The letter cites Section 23A of the Federal Reserve Act, which “restricts transactions between banks and their non-bank affiliates, placing limits on the amount of each transaction relative to a bank’s capital and prohibiting purchases of certain ‘low quality’ assets.” Section 23A was designed to keep FDIC-insured entities from engaging in risky activity, much like the Volcker Rule, part of the Dodd-Frank bill, was designed to do.

By moving the derivatives onto the deposit bank’s sheets, BofA has done two things according to the letter: increased their credit risk without increasing their capital cushion, and made the FDIC the “backstop” for in the event of default. Effectively, BofA has made U.S. taxpayers a counterparty to their risk, and they might have done it just to avoid having to raise collateral capital for Merrill Lynch.

The end result is that Bank of America is clearly gearing up to go completely under, taking out the entire FDIC with it.  Bank of America’s toxic derivatives will single handedly wipe out all of the FDIC holdings and cause congress, in an effort to stand by the FDIC, go deeper into debt by borrowing from the FEDERAL RESERVE BANK once again.  It is pattently obvious that this is why the FEDERAL RESERVE BANK was completely in agreement with Bank of America transfering the trillions in toxic derivatives to begin with.

And, that is not even a conspiracy theory.  It is blatantly obvious and on the books for all to see.

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Why Libertarians Should Shut-Up

Why Libertarians Should Shut-Up

Libertarians are you aware that all these children are students of the almighty media?  They learn at its feet and worship the words of NBC, CBS, ABC, CNN.  To them every word spoken is gospel and none can besmirch its holy rhetoric.

You dare challenge their menial mental tasks that believe that SS, medicare, etc is somehow laudable   You dare challenge their concept of Americanism by bringing up the US constitution and its promise that if we keep the government small that we can enjoy a tax free society?  You dare challenge the almighty Obama, upon who’s hopes and yes we cansians have placed their halo?

So what is the dollar is set to be completely annihilated as soon as Germany gets tired of the shenanigans or the Chinese buy that last bit of gold to make them the only asset backed currency on the planet?  So what if the UN is poised to initiate the final stages of global governance, in whom hands Obama is placing America.

No, it will not be until the very end that these mewling sheep will wake up and realize that the very messiah, in whom they placed much favor, was the very instrument that delivered them into the belly of the beast.

These, have no idea how close we are to destruction.  They think it is just a case of choosing a good versus an evil or a better of the same.  That day is long past.  We have played into the hands of the globalist and put a fox in charge of the hen house.

I fear, if we actually chose a real president it would mean a real world war, because the rest of the world will not want a purely sovereign and independent United States.  The globalist will not stand for it.  And they will not give up without a real live fight.

Our options now are total doom or total war.

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Obama Lies About Real Estate

Obama Lies About Real Estate

[ We apologize for this post.  We normally keep opinion out of all our economic news, but this is just too ridiculous not to call attention to it.  The president of the United States stood in front of millions and lied to the citizens.  While he is not the first president to do so, the News Media will not point out the lie, nor inform anyone of it. ]

The Obama administration is trying to boost his very low approval rating and polls.  He is trying to appear to do new things, but it is really more of the same thing.  For instance he is trying to revamp HARP

What is HARP? The Obama administration in 2009 rolled out HARP to refinance borrowers whose loans were backed by Fannie Mae and Freddie Mac and who were current on their payments. The idea was simple: If you were making your payments on time but didn’t have enough equity to refinance, you would be able to lower your rate without having to pay down your mortgage balance or take out mortgage insurance.

Initially, the program was limited to borrowers who owed between 80% and 105% the value of their homes. In mid 2009, the program was opened to borrowers who owed up to 125% the value of their homes.

But a series of unforeseen “frictions” have led fewer borrowers to take up on the offer of lower rates. Fewer than 900,000 homeowners have refinanced under HARP over the past 2½ years, and just 72,000 of those borrowers have loan-to-value ratios between 105% and 125%.

Last week Democratic President Barack Obama visited Las Vegas, Nevada.  While visiting local areas of Vegas and taking plenty of photo opportunities, he outlined new rhetoric aimed at easing the war torn housing graveyard of Las Vegas.

The president outlined the three basic parts to his new mortgage refinancing plan when he visited Las Vegas:

  • Responsible homeowners will be able to refinance government-backed mortgages regardless of how much their home’s value has dropped. 
  • The closing costs will be lower and even some refinancing fees will be done away with completely. There are times when such fees are so prohibitive that they cancel out any benefit of refinancing. 
  • Consumers will have the opportunity to shop around to get the best rates. Currently, those homeowners with underwater mortgages have to refinance with their current lenders. That not only precludes competition, but it also means homeowners are at the mercy of their lenders.

This will do to the private sector in real estate investing, as it did to the private sector in indigent care, i.e. homeless shelters and soup kitchens.  They had to close en masse, because the government got in on the project and people stopped donating to them.

I see the small private real estate investors being squeezed out because the government gets involved.  We literally have to fight this tooth and nail.  It is a lie to say real estate is not speculative and an risky business.  The potential home owner walks into this area blindly thinking the market will always go up.  Since I’ve been alive there has been a crash every decade.

On the back end of his speech however, details have emerged which have shown Obama’s true colors once again.  His glorious plan only applies to those who have lost only 10% of their home value after 2008.  So in fact no one in Las Vegas will benefit from his plan.  It was all just pure rhetoric.  Also the plan only applies to those who have FANNIE MAE and FREDDIE MAC backed loans.

After doing some number crunching, Obama’s new refinance plan will only potentially help about 1,000,000 more people.

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National Natural Hair Day Tomorrow

National Natural Hair Day Tomorrow


Natural Hair Day

Take a picture of yourself tomorrow and post the link here. I believe in the natural beauty of women, and I hope you believe in yourself.

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Bank of America Woes (part 3)

Bank of America Woes (part 3)

$3.3 Billion in employee bonuses 2008, after accepting bailout money.

Bank Of America Customers Get The Heck Out Of That Bank!” Senator Dick Durbin

Senator Durbin reveals that it costs a bank 7cents to complete a transaction via debit card per transaction.  They charge customers and merchants both for the transaction itself and a usage fee to an astounding 44cents per each party.  After congress passed reform, Bank of America announced a debit card fee in the amount of $5.00/ month.  This will offset the losses, due to the reform, by an astounding 200%.

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Bank of America Woes (part 2)

Bank of America Woes (part 2)

We do not know the total amount of derivatives transfer to the bank and the bank will not share that information with the public.

Bank Of America Forces Depositors To Backstop Its $53 Trillion Derivative Book To Prevent A Few Clients From Departing The Bank

FDIC and Federal Reserve Bank fight over the Bank of America’s move to insure investor risky bets with customer deposits

Federal Reserve and Bank of America Initiate a Coup to Dump Billions of Dollars of Losses on the American Taxpayer.

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Bank of America Woes (part 1)

Bank of America Woes (part 1)

Bank Of America equity is worthless. CFC­related litigation is going from bad to worse, it can lead to violent erosion of shareholders’ equitywhich. Combined with the run on the bank that has slowly begun, the $53 trillion in derivatives, the lack of sustainable competitiveadvantages and the depleting political influence, I believe this is a terminal short.

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