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Bank Of America CDS Hits Escape Velocity

Tyler Durden's picture





 

We take this moment from your busy schedules to update you that the CDS of Bank of America has reached escape velocity and has now entered suborbital traffic. At 370 bps, which is where the CDS is trading as of this moment, it is only 30 away from the 400 it hit in March of 2009 when the world had to be bailed out by the Fed: a ploy which this time will not work since every central bank has already doubled down to the hilt. In other news, expect bashing of evil bloggers who indicate BofA default risk spikes to commence momentarily as obviously it is only they who are to blame for BAC's upcoming bailout.

(red dot is where we are now)

 


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Mon, 08/22/2011 - 13:57 | Link to Comment LawsofPhysics
LawsofPhysics's picture

There it is.  ZH knew long ago that the chairsatan would get a sacrafice and BAC would be the first to go to the alter.

Mon, 08/22/2011 - 14:02 | Link to Comment slaughterer
slaughterer's picture

Once they pump this CDS past 400 bp, I would expect a stock halt and an "announcement."  At least, I hope so...

Mon, 08/22/2011 - 14:09 | Link to Comment TheTmfreak
TheTmfreak's picture

PHEW! Hold onto ya butts.

Mon, 08/22/2011 - 14:22 | Link to Comment ratso
ratso's picture

"Buffeting, buffeting... I don't have control..  do you read me?

Mon, 08/22/2011 - 14:25 | Link to Comment eureka
eureka's picture

It was fun while it lasted. Goodbye Bofa. Good Wall Street. Goodbye U.S. Empire. C U N Heavn'. Over & Out.

Mon, 08/22/2011 - 14:43 | Link to Comment Thomas Jefferson
Thomas Jefferson's picture

Goodbye Charlotte North Carolina.  Better plant the cotton fields early next year.

Mon, 08/22/2011 - 15:09 | Link to Comment j0nx
j0nx's picture

Goodbye my credit card debt because no way I'm paying 100c on the dollar for that shit when they die. I'll offer 15c on the dollar to whoever absorbs their rotting corpse as a one time only take it or leave it mofos deal.

Tue, 08/23/2011 - 04:21 | Link to Comment fx
fx's picture

so you demand that someone else shall pay YOUR debt that you voluntarily incurred for YOUR own spending purpose? You are no better than the evil bankers that you blame. likely you are much worse. A man who doesn't honor his debt is a coward, a cheater and a parasite and will sooner or later get what he deserves. what goes around comes around.

Tue, 08/23/2011 - 07:14 | Link to Comment j0nx
j0nx's picture

Are you retarded or something? That's my entire point. NOBODY else is paying that debt if BAC goes under. The debt will get sold to some vulture who will try to collect 100c on the dollar for debt they paid 7c for. Put down the beer, turn off Jersey Shore and start using your brain.

Mon, 08/22/2011 - 18:56 | Link to Comment New_Meat
New_Meat's picture

Charlotte had a practice riot on Memorial Day.  Just sayin'

Mon, 08/22/2011 - 20:03 | Link to Comment TheTmfreak
TheTmfreak's picture

Somebody brought this to my attention recently and I completely forgot about this fact. My sister just moved back there (from San Fran.. hah) and well now... damn, if BAC goes down... yeah no shit good by charlotte.

 

 

Mon, 08/22/2011 - 22:14 | Link to Comment sunnydays
sunnydays's picture

A song was dedicated to Bank of America.  Seems like it will be used soon.

http://sherriequestioningall.blogspot.com/2011/08/for-bank-of-america-th...

 

Mon, 08/22/2011 - 14:34 | Link to Comment In Fed We Trust
In Fed We Trust's picture

There will be no bailout for BofA.

Dint u remember, Merril dumped all it's toxic shit on BofA for a premium.

BofA by design is a garbage disposal.

They will disappear in the next round,

Mon, 08/22/2011 - 16:32 | Link to Comment ZeroPower
ZeroPower's picture

Never heard of a stock halt due to CDS premia. 

Mon, 08/22/2011 - 19:23 | Link to Comment IQ 145
IQ 145's picture

Canadian Womens iz Good! Eh? It's an internet blog. we got all kind of things you never saw before; manipulated this and consipiracied that and alien flying saucers on the white house lawn; come on loosen up a little. You think you got problems, I went long BAC at $7.37 to prove to these ignorant bitchaez that that's how you make money; by buying dips. Not too wonderful, so far. But, keep your pecker up, as our english coursins say, tomorrow's another day.

Mon, 08/22/2011 - 19:52 | Link to Comment Stax Edwards
Stax Edwards's picture

I will take to the streets hopefully among the rest of the sleepy americans if Tarp 2 (or are we at three now, a couple deep already) is announced.  This IMO will be the straw that broke the camels back.  We simply cannot stand for this bullshit any longer.  We are bringing the future of our country to collapse to support the elite who caused this mess.  Long pitchforks and ready to take our country back.  Whose gonna join me?

 

I am particularly appalled that FNM and FRE are now preparing to sell foreclosed rez re to the investment banks and REIT's at pennies on the dollar as opposed to allowing real price discovery so that the responsible in this country can build their own enterprises buy buying the stuff and providing shelter for our neighbors in the time of need.  All to support rental prices for the haves at the expense of the have nots.  All to hold rents at the manipulated market rates holding downt the entrepreneurs among us.  I am getting sick watching the crony capitalism unfold.  Absolutely sickening.

Mon, 08/22/2011 - 20:35 | Link to Comment New_Meat
New_Meat's picture

"Canadian Womens iz Good! Eh?"

N'est ce pas?

Your BAC position? sux 2 b u--punch out.  Dang, u not b doin' up 2 ur handle. 

- Ned

Mon, 08/22/2011 - 17:12 | Link to Comment NewThor
NewThor's picture

What about the Bank of America murals that predicted QE 20 years ago?

It's all baked in the cake.

 

 

Mon, 08/22/2011 - 14:03 | Link to Comment citta vritti
citta vritti's picture

but, but, but, they're not virgins!

Mon, 08/22/2011 - 14:08 | Link to Comment Mr. Mandelbrot
Mr. Mandelbrot's picture

Crash and burn BAC bitches . . .

Mon, 08/22/2011 - 14:14 | Link to Comment dark pools of soros
dark pools of soros's picture

agreed - they tried to smack me with 5 overdraft fees because they waited on clearing a deposit..  i refi'ed away from them a year ago and closed my account last month..  hope someone else buys their bill pay tech since that's the only thing that worked

 

 

Mon, 08/22/2011 - 19:06 | Link to Comment stewmint
stewmint's picture

That just means you don't manage your money very well, or you don't have much money to manage. Ain't their fault.

Mon, 08/22/2011 - 15:08 | Link to Comment sunnydays
sunnydays's picture

Couldn't have said it better!

Mon, 08/22/2011 - 14:27 | Link to Comment Taku
Taku's picture

Obama, BAC is insolvent.
Your boys gave them taxpayer money last round. What's your next move?

Mon, 08/22/2011 - 14:30 | Link to Comment Hugh G Rection
Hugh G Rection's picture

Hey Bank of Amerikkka,

"We WONT help you out."

http://www.youtube.com/watch?v=40K7p3kZO9c

Mon, 08/22/2011 - 19:49 | Link to Comment IQ 145
IQ 145's picture

Would all you people just stop saying bad things about BAC; you're making me nervous. Thank You.

Mon, 08/22/2011 - 13:57 | Link to Comment BaBaBouy
BaBaBouy's picture

GoldToTheMoon Bitchez ...

Mon, 08/22/2011 - 14:03 | Link to Comment spiral_eyes
spiral_eyes's picture

bitches, bitchez:

(from bloomberg)


Prostitutes Flood Vallejo After City Slashes Police

When Ruth Rooney moved in 2005 to a two-bedroom house in Vallejo,California, near Napa Valley’s famed wineries, the historic St. Vincent’s Hill neighborhood attracted young professionals and there were few vacancies.

Things began to change in 2008 after Vallejo, a city of about 116,000 that had lost its biggest employer, the U.S. Navy’s Mare Island shipyard, filed for bankruptcy, said Rooney, a 54-year-old marketing consultant.

“I see prostitutes, pimps and drug dealers out my front window,” Rooney said in a telephone interview Aug. 5. “There’s two on the corner right now.” Her property value has dropped 70 percent in six years, she said.

Vallejo’s experience comes as Central Falls, Rhode Island, proposes $5.6 million in budget cuts after seeking Chapter 9 protection this month and Jefferson County, Alabama, negotiates with creditors to avoid what would be the biggest government filing in U.S. history. There have been five municipal bankruptcies this year, compared with six in 2010, according to data compiled by Bloomberg.
 

 

Mon, 08/22/2011 - 14:04 | Link to Comment Cash_is_Trash
Cash_is_Trash's picture

Hookerz, bitchez

Mon, 08/22/2011 - 14:10 | Link to Comment bbq on whitehou...
bbq on whitehouse lawn's picture

Seems like a great place to move if you're single. Its the fallout thats a killer.

Mon, 08/22/2011 - 14:13 | Link to Comment slaughterer
slaughterer's picture

Exactly.  I think I found my new home: hookers, excellent wine, low real estate prices.  I am moving there. 

Mon, 08/22/2011 - 14:15 | Link to Comment Little John
Little John's picture

So long Bedford Falls, hello Pottersville.

Mon, 08/22/2011 - 14:16 | Link to Comment LawsofPhysics
LawsofPhysics's picture

first bullish news I have seen in a while.  Now THAT is capitalism...    ...bitches.

Mon, 08/22/2011 - 19:27 | Link to Comment IQ 145
IQ 145's picture

She's pretty fucking stupid. What the fuck did she think was going to happen when they closed Mare Island; An economic miracle? There's a time to sell everything; why do people have so much trouble figuring this out?

Mon, 08/22/2011 - 22:54 | Link to Comment StychoKiller
StychoKiller's picture

When Capitalism is Outlawed/regulated to death/over-taxed, only Outlaws will engage in Capitalism!   Deal with it!

Mon, 08/22/2011 - 13:58 | Link to Comment Fukushima Sam
Fukushima Sam's picture

Meltdown, bitchez!

Mon, 08/22/2011 - 13:58 | Link to Comment Cash_is_Trash
Cash_is_Trash's picture

8 bucks from 1,900

Mon, 08/22/2011 - 13:58 | Link to Comment LaughingMan
LaughingMan's picture

HOOCHEY MAMA!

Mon, 08/22/2011 - 14:01 | Link to Comment runlevel
runlevel's picture

serenity now.. insanity later.

Mon, 08/22/2011 - 13:58 | Link to Comment spiral_eyes
spiral_eyes's picture

"the recovery"

nice one b-o. 

Mon, 08/22/2011 - 14:22 | Link to Comment 1100-TACTICAL-12
1100-TACTICAL-12's picture

Recovery summer draws to a close, next up "____________ " Autum ....

Mon, 08/22/2011 - 13:58 | Link to Comment RacerX
RacerX's picture

higher is better, no?

Mon, 08/22/2011 - 13:59 | Link to Comment Silvergood
Silvergood's picture

Run on US banks coming next...Get your money out while you can!

Mon, 08/22/2011 - 13:59 | Link to Comment flacon
flacon's picture

Bring the chaos. It's about time. 

Mon, 08/22/2011 - 13:59 | Link to Comment Shock and Aweful
Shock and Aweful's picture

UH-OH....

Mon, 08/22/2011 - 14:00 | Link to Comment Cash_is_Trash
Cash_is_Trash's picture

Indeed, paper is becoming ever-more worthless

Economic Bifurcation, bitchez

Mon, 08/22/2011 - 13:59 | Link to Comment flacon
flacon's picture

Poor, poor, Perry. Guess he's going to need to "help" out BAC instead of BAC helping him out. 

Mon, 08/22/2011 - 13:59 | Link to Comment slaughterer
slaughterer's picture

Question is if BAC is enough or if Citi has to go to the altar as well.  And then (why stop there?) maybe a trifecta with Dexia being led to the chopping block for the Euro-sacrifice. 

Mon, 08/22/2011 - 14:01 | Link to Comment John McCloy
John McCloy's picture

   BAC is the sacrifice absolutely. That should create the needed fear for a TARP 2. It is a great thing Frank Dodd "Allows bad banks to be cordoned off by the Fed and winded down so as not to affect the other banks" -Timmy 

Mon, 08/22/2011 - 14:07 | Link to Comment Raynja
Raynja's picture

The fed will change its name to bank of america in a reverse merger.

Mon, 08/22/2011 - 14:15 | Link to Comment achmachat
achmachat's picture

Trivia of the day:

Bank of America used to be called Bank of Italy.

Mon, 08/22/2011 - 14:21 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Who needs QEIII when TARPII is the next in sequence?

Mon, 08/22/2011 - 14:31 | Link to Comment SheepDog-One
SheepDog-One's picture

Only thing missing from QE3 TARP II is....wheres the panic anywhere? Markets are fine, everyone just waiting for more football, calm as Hindu cows.

But hey go ahead FED, give me $4,000 gold I'll be real happy!

Mon, 08/22/2011 - 14:53 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Panic has been the m.o. that it has become normalcy bias for me.

Mon, 08/22/2011 - 14:18 | Link to Comment SheepDog-One
SheepDog-One's picture

Fear where? Can you point to any? DOW +100.

I see no fear at all from Hindu cow-calm people around me...2 right now are talking about the NFL games yesterday, and cant wait for next weekends games.

No panic at all anywhere.

Mon, 08/22/2011 - 18:22 | Link to Comment vocational tainee
vocational tainee's picture

BAC&DC ...banking art center drama club...

Mon, 08/22/2011 - 14:01 | Link to Comment caerus
caerus's picture

blast off bitchez

Mon, 08/22/2011 - 14:02 | Link to Comment Gold Man-Sacks
Gold Man-Sacks's picture

Where does Tyler get those charts?

Mon, 08/22/2011 - 14:06 | Link to Comment Sequitur
Sequitur's picture

Bloomberg professional. We have several in our office. Great service, but pricey. Also, if you ever got to see the "behind the scenes" of a pro trading floor, HFT office, or especially overseas trading offices (i.e. Asia), never again would a mom-and-pop retail investor put money into these markets. You are so hopelessly outmanned and outgunned.

Mon, 08/22/2011 - 14:08 | Link to Comment Gold Man-Sacks
Gold Man-Sacks's picture

Awesome, thanks for the info.  I've been trying to find these for a while now.

Mon, 08/22/2011 - 14:08 | Link to Comment Surly Bear
Surly Bear's picture

They're cheaper if you buy them in bulk.

Mon, 08/22/2011 - 14:19 | Link to Comment dark pools of soros
dark pools of soros's picture

don't they just let you put your chips on a table and shoot a few rounds like a craps table??  I think A.C. has a few of them installed now

Mon, 08/22/2011 - 14:24 | Link to Comment Surly Bear
Surly Bear's picture

In accounting, all our chips belong to someone else, but yes, you're shooting craps if you don't have a Bloomberg terminal.

Mon, 08/22/2011 - 14:13 | Link to Comment bbq on whitehou...
bbq on whitehouse lawn's picture

Pros are fast, not smart.

Mon, 08/22/2011 - 14:35 | Link to Comment Variance Doc
Variance Doc's picture

+1

Mon, 08/22/2011 - 19:33 | Link to Comment IQ 145
IQ 145's picture

Bullshit. I can tell you exactly how to make money as an individual investor. I need a publisher; you know any publishers? I'm not publishing anything on the internet. Certain markets and instruments are not appropriate for individuals; they don't need any ooptions, they don't need any ETFs, they don't want to try to hedge anything; aside from that it's a matter of waiting for the hive mind to go all stupid and then counter-punching. Looke at my post here when I sold the CHF/USD over 1.40. All the computers and bank desks in the workld didn't prevent you from being my lunch. Stupid is stupid; and sutpid with a computer program is even worse. and it can be traded against.

Mon, 08/22/2011 - 14:17 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The same place Batman gets his toys.

Mon, 08/22/2011 - 14:04 | Link to Comment Bokkenrijder
Bokkenrijder's picture

How convenient, when is that Jackson Hole meeting again...?

Mon, 08/22/2011 - 14:04 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

Mr Moynihan should have his net worth in BAC CDS.

Mon, 08/22/2011 - 14:04 | Link to Comment Josh Randall
Josh Randall's picture

when people start rooting for you to Fail -- you've already jumped the Shark

Mon, 08/22/2011 - 14:04 | Link to Comment FluffyCone
FluffyCone's picture

How does this hurt BAC? Please break this down for me, the average "Joe Main Street". Thanks for your patience. Sincerely,

Mon, 08/22/2011 - 14:10 | Link to Comment Sequitur
Sequitur's picture

When you blow out the CDS spreads like this, it's telling you the market is pricing in failure. I'll leave it at that, but understand this: the stock market is stupid. Credit-default underwriters, not so stupid (unless you work for AIG, earn a bonus on every swap, and don't give a shit when the entire fuckcluster grenades the company and all counterparties (i.e. the market), because of course the Fed is there to pick up the pieces at taxpayer expense).

Mon, 08/22/2011 - 14:21 | Link to Comment dark pools of soros
dark pools of soros's picture

AIG was allowed to be a whore since GS was doing the fucking

Mon, 08/22/2011 - 14:49 | Link to Comment Pladizow
Pladizow's picture

To: FluffyCone

Think of a Credit Default Swap (CDS) as a form of insurance policy.

As the likelyhood of something defaulting increases, so does the cost to insure aginst that happening.

So as BAC CDS's increase, the CDS seller thinks there is a greater chance he will have to pay the claim.

Mon, 08/22/2011 - 14:04 | Link to Comment DutchSucker
DutchSucker's picture

So the latest bears video is right, JPMorgan is going to eat BAC...burp!

Mon, 08/22/2011 - 14:05 | Link to Comment AmazingLarry
AmazingLarry's picture

Transient. It too shall soon pass. Didn't Kim K look stunning in that dress, though!! 

Mon, 08/22/2011 - 14:11 | Link to Comment Boop
Boop's picture

Yes, such a lovely train, too!

Mon, 08/22/2011 - 19:38 | Link to Comment IQ 145
IQ 145's picture

Train, what train ? The bitch is pullin a train now? Where's the video for that?

Mon, 08/22/2011 - 14:13 | Link to Comment the not so migh...
the not so mighty maximiza's picture

she has that big-ole butt porn star look

Mon, 08/22/2011 - 17:50 | Link to Comment bread n circuses
bread n circuses's picture

bread n circuses, bitchez...

 

Mon, 08/22/2011 - 14:05 | Link to Comment TooBearish
TooBearish's picture

ya GS top ticked 2mm there sos they can short it down to 275

Mon, 08/22/2011 - 16:34 | Link to Comment ZeroPower
ZeroPower's picture

...their NYC credit desk is a MM in fin CDSs

Mon, 08/22/2011 - 14:07 | Link to Comment valuetrader
valuetrader's picture

MER and BAC were bailed out in 2008. They promptly use the money to pay bonuses to themselves. Is it going to be the same this time?

Mon, 08/22/2011 - 14:22 | Link to Comment dark pools of soros
dark pools of soros's picture

why would they stop looting??  no cop no law

Mon, 08/22/2011 - 19:36 | Link to Comment IQ 145
IQ 145's picture

Yes.

Mon, 08/22/2011 - 14:09 | Link to Comment Doyle Hargraves
Doyle Hargraves's picture

Giant squid and morgue will get the prime pieces (merrill lynch, depositers funds) and we will get stuck with the rest (cunt tree wide), don't you just f*cking love crony capitalism?/SARC

On a good note TARP 2, more QE may just make Ron Paul's message hit home, but I am not holding my breath.

"Fuck the system"

http://www.youtube.com/watch?v=NNAVD1MfAYo

Mon, 08/22/2011 - 14:21 | Link to Comment john39
john39's picture

facism.  private profits, public losses...  what a great country.

Mon, 08/22/2011 - 19:53 | Link to Comment IQ 145
IQ 145's picture

Have you checked the taxes and gas price in Europe lately? There aren't any great countries, okay? But you gotta a lotta wiggle room, here.

Mon, 08/22/2011 - 14:08 | Link to Comment treemagnet
treemagnet's picture

Wanka-vator like.

Mon, 08/22/2011 - 14:10 | Link to Comment oa92000
oa92000's picture

Tyler,

what caused BAC CDS to spike??

Mon, 08/22/2011 - 14:23 | Link to Comment dark pools of soros
dark pools of soros's picture

their spiked kool-aid

Mon, 08/22/2011 - 15:57 | Link to Comment Stax Edwards
Stax Edwards's picture

Moynihan lost big at a card game with the other banksters Saturday night and refused to pay up

Mon, 08/22/2011 - 14:11 | Link to Comment Lazlo Toth
Lazlo Toth's picture

This gonna hurt.

Mon, 08/22/2011 - 14:11 | Link to Comment A Man without Q...
A Man without Qualities's picture

The problem with a simple bailout of BAC is there is no real limit to the scale of their losses linked to mortgages.  You've got the hit from the putbacks to Countrywide, then you've got the reps and warranties risks from the MBS origination, plus the risk that investors in CDOs can demand compensation for investing in products linked to fraudulent MBS.  In fact, the only way to move forward is to break up the bank, ring fence the commercial banking operations and put the rest into default.  You cannot do a rights issue, or have any other form of capital injection until there is a number for total losses, or you're just pouring water into a bath with a hole in it.

 

Mon, 08/22/2011 - 14:14 | Link to Comment SheepDog-One
SheepDog-One's picture

Bailout capital from who, the unemployed bankrupt ex-middle class?

Mon, 08/22/2011 - 14:29 | Link to Comment Yardstick of Ci...
Yardstick of Civilization's picture

No, their great, great grandchildren who will theoretcially have jobs created by the very entities to be bailed out.  Don't you see how that's worth it?

Mon, 08/22/2011 - 14:32 | Link to Comment SheepDog-One
SheepDog-One's picture

I see how all my $400 gold will soon be real worth it at $4,000 overnite!

Mon, 08/22/2011 - 14:22 | Link to Comment Doyle Hargraves
Doyle Hargraves's picture

The problem with a simple bailout of BAC is there is no real limit to the scale of their losses linked to mortgages.- Exactly what TPTB intended when they fed them cunt tree wide. If CFC had been worth anything don't you think the morgue, the squid, or any other of TPTB would have got in on that action? I think BAC has been an insurance policy to continue the looting until the end of the line. A failure on this scale surely justifies TARP to infinity and QE on a massive open ended scale. This I think, was the plan by TPTB in case they had to go that route. It now appears their 'insurance' policy will pay off.

Mon, 08/22/2011 - 14:26 | Link to Comment SheepDog-One
SheepDog-One's picture

Sure, the WHOLE point of all this from the begining was not to keep finding ways to bail out these banks, but ensuring they were completely bankrupt. Just digging the grave deeper is all.

People keep missing the overall TPTB plan, 1 world govt, with 1 currency.

But go ahead and print more, I dont mind seeing my $400 gold at $4,000. Robo would grind his teeth off reading that.

Mon, 08/22/2011 - 14:37 | Link to Comment Doyle Hargraves
Doyle Hargraves's picture

Hey long gold and ammo here, as always, got in when Bonner said it was the trade of the decade back in early 2000s. The point is one world gubmint/currency, and that is a lot easier when TPTB can consolidate more power (BAC insurance policy), while laying waste to the taxpayer with their losses. As long as they print and if BAC fails and the ponzi cracks we will see what the people are really made of when they pass TARP 2. If it gets passed with barely a whimper from the populace then we know we are screwed beyond all belief, as the will to stand up has been totally destroyed. I pray that is not the case...

Mon, 08/22/2011 - 15:42 | Link to Comment CompassionateFascist
CompassionateFascist's picture

You're not getting it. Stop 100 people at random in the street, ask them "what is TARP?", what is "QE"?,  >90% couldn't tell you. It's when the free food cards stop working, when the dollar stops buying stuff, when real unemployment hits 40%, and etc., THEN the street fighting will begin.

Mon, 08/22/2011 - 16:04 | Link to Comment Doyle Hargraves
Doyle Hargraves's picture

I do my part to educate the unwashed masses, to get them to lose that blank idiocracy stare they have when I mention these things, unfortunately there are those of us who are well prepared, and those will be slaughtered. So be it I guess.

Mon, 08/22/2011 - 14:12 | Link to Comment TumblingDice
TumblingDice's picture

Time to buy insurance for that insurance.

Mon, 08/22/2011 - 14:36 | Link to Comment In Fed We Trust
In Fed We Trust's picture

Insurance is a scam.

Why do you think Warren Buffet is so rich.

And Warren , saying the rich need to pay more when gE pays zero taxes?

How funny is that?

Mon, 08/22/2011 - 15:32 | Link to Comment V in PA
V in PA's picture

Thinking businesses pay taxes is a scam. The consumer pays ALL taxes either directly or indirectly.

Mon, 08/22/2011 - 16:04 | Link to Comment Pay Day Today
Pay Day Today's picture

No corporate is going to drop their prices to the consumer just because you give them a break on corporate income tax.

Have you seen the economy? Record corporate profits for the lst three years while Main St consumers are slaughtered.

Mon, 08/22/2011 - 14:39 | Link to Comment Sgt.Sausage
Sgt.Sausage's picture

It's called "Re-insurance":

http://en.wikipedia.org/wiki/Reinsurance

 

 

Mon, 08/22/2011 - 14:13 | Link to Comment SheepDog-One
SheepDog-One's picture

Markets totaly ignoring this, unlike 2009.

Mon, 08/22/2011 - 14:13 | Link to Comment Cone of Uncertainty
Cone of Uncertainty's picture

Attention BOA customer, I would like to take this moment to tell you that you are fucked.

That is all.

Mon, 08/22/2011 - 14:29 | Link to Comment YellowShark
YellowShark's picture

stupid q: what happens to cc accounts in a collapse?

Mon, 08/22/2011 - 14:32 | Link to Comment Cone of Uncertainty
Cone of Uncertainty's picture

You turn in a gold leaf shaving for $1M USD and payoff all your debts and those of your friends and family members.

Shit, given the collapse that is about to occur I might go take out a $100k personal loan just for the fuck of it.

Mon, 08/22/2011 - 14:35 | Link to Comment SheepDog-One
SheepDog-One's picture

Good idea, apply for the biggest loans possible from all banks, turn it all into PM's immediately, rip up bank loan docs.

Mon, 08/22/2011 - 21:04 | Link to Comment Stax Edwards
Stax Edwards's picture

Speaking of which anybody seen Chumbawumba

Mon, 08/22/2011 - 14:15 | Link to Comment gwar5
gwar5's picture

BAC isn't part of the founding member 1913 Squid Club. They were hazed during the first bailout by being made to swallow some bad sh#t, like CountryWide. I had to use a BAC for an account because they were nationwide. I think I'll get it out and try to make other arrangements just to piss them off. 

 

 

Mon, 08/22/2011 - 14:24 | Link to Comment John McCloy
John McCloy's picture

   Yes sir and that is all that is needed to know. The cool kids club is closed to new members.

Mon, 08/22/2011 - 14:15 | Link to Comment SheepDog-One
SheepDog-One's picture

What I want to see is bank runs, complete with National Guard troops!

Mon, 08/22/2011 - 14:28 | Link to Comment the not so migh...
the not so mighty maximiza's picture

and tanks!!!!!!

Mon, 08/22/2011 - 14:40 | Link to Comment RobD
RobD's picture

and firetrucks!!!!

Mon, 08/22/2011 - 15:08 | Link to Comment TheGoodDoctor
TheGoodDoctor's picture

And popcorn trucks!

Mon, 08/22/2011 - 16:06 | Link to Comment Pay Day Today
Pay Day Today's picture

It's a shame that bank runs happen over IT and mobile networks now. Less dramatic and no fistfights.

Mon, 08/22/2011 - 21:09 | Link to Comment Stax Edwards
Stax Edwards's picture

and switchgrass!

Mon, 08/22/2011 - 14:16 | Link to Comment slaughterer
slaughterer's picture

Break it down:

1.)  Countrywide goes to Fannie and Freddy, obviously.

2.)  Bank of America retail franchise goes to JPM.

3.)  ML goes to ... who?  (I still cannot figure out a buyer for ML). 

Mon, 08/22/2011 - 14:23 | Link to Comment SheepDog-One
SheepDog-One's picture

We need way less banks, not shuffling new seized banks into old banks. 

Mon, 08/22/2011 - 14:52 | Link to Comment Almost Solvent
Almost Solvent's picture

Not sure retail BofA would go to Chase.

Here in NY there is a Chase on every corner and a BofA on the other corner, accross from the HSBC branch.

They might break up retail outlets based on geography instead of a wholesale.

Mon, 08/22/2011 - 15:55 | Link to Comment dark pools of soros
dark pools of soros's picture

like cable!

Mon, 08/22/2011 - 14:25 | Link to Comment dark pools of soros
dark pools of soros's picture

ML puts on the golden parachutes and flys off into bankster lore

Mon, 08/22/2011 - 14:34 | Link to Comment Cone of Uncertainty
Cone of Uncertainty's picture

ML goes to the taxpayer through direct equity purchase.

Mon, 08/22/2011 - 15:35 | Link to Comment Templeton
Templeton's picture

They could go to MS or GS.  Just because MS and GS have problems of their own won't stop them from pouncing on a rival if they get the chance.

Mon, 08/22/2011 - 14:16 | Link to Comment oa92000
oa92000's picture

WFC, JPM..all ok.. why BAC get single out???

Mon, 08/22/2011 - 14:23 | Link to Comment Strom
Strom's picture

Someone Knows Something...

Mon, 08/22/2011 - 14:17 | Link to Comment the not so migh...
the not so mighty maximiza's picture

the revenge of Shiela Baer, thay sould have listened to her.

Mon, 08/22/2011 - 14:21 | Link to Comment SheepDog-One
SheepDog-One's picture

Oh yes, the anchor morons on the Clownhorn CNBC used to have such a grand old time laughing at Shiela.

Mon, 08/22/2011 - 14:23 | Link to Comment Nothing To See Here
Nothing To See Here's picture

This is not the rebound you are looking for

Mon, 08/22/2011 - 14:23 | Link to Comment lolmao500
lolmao500's picture

Not only BAC is melting down, but Fukushima too.
http://www.youtube.com/watch?v=Ip4aMIXHd5s

Mon, 08/22/2011 - 14:24 | Link to Comment markar
markar's picture

time to break this turd up and kill it once and for all. Of course, anything of value goes to JPM & GS

Mon, 08/22/2011 - 14:24 | Link to Comment small watcher
small watcher's picture

(red dot is where we are now)

Keep feeling fascination
Passion burning
Love so strong
Keep feeling fascination
Looking learning
Moving on

Mon, 08/22/2011 - 17:18 | Link to Comment Dirt Rat
Dirt Rat's picture

For those of you who didn't live through the 80s or who were too coked out to remember them, we present Human League.

Mon, 08/22/2011 - 14:24 | Link to Comment Sequitur
Sequitur's picture

Someone start taking bets. How long until BAC is removed as a Dow Jones Industrial Average component? 

Mon, 08/22/2011 - 14:27 | Link to Comment Zymurguy
Zymurguy's picture

I've been wondering the same thing... what conditions or criteria would cause BAC to be de-listed?

Also... do you expect to see a major BAC sell off soon?  minutes?  hours or a few days yet?

Mon, 08/22/2011 - 14:53 | Link to Comment New_Meat
New_Meat's picture

"Component changes are rare and usually occur only when an existing
company is going through a major change, such as a shift in its main line
of business, acquisition by another company or bankruptcy. There is no
review schedule.
Component changes are made by an Averages Committee comprised of
the Managing Editor of The Wall Street Journal, the head of Dow Jones
Indexes research and the head of CME Group research. The Averages
Committee was created in March 2010, when Dow Jones Indexes
became part of CME Group Index Services, LLC, a joint venture company
owned 90% by CME Group Inc. and 10% by Dow Jones & Company.
Selected components are always U.S. companies, are leaders in their
industries, are widely held by investors and have long records of
sustained growth."

from http://www.djindexes.com/mdsidx/downloads/brochure_info/Dow_Jones_Indust...

- Ned

Mon, 08/22/2011 - 14:48 | Link to Comment Downtoolong
Downtoolong's picture

I imagine there are already a few Blue Chip Equity Fund Managers starting to sweat over this possibility. Who needs to get fired for misconduct or a fraud lawsuit just to protect a company that has already embarassed the shit out of you with your shareholders multiple times?

 

Mon, 08/22/2011 - 21:11 | Link to Comment Stax Edwards
Stax Edwards's picture

I'll give em one month if Moynihans garage sale doesn't go well

Mon, 08/22/2011 - 14:26 | Link to Comment DonBadajoz
DonBadajoz's picture

BURN BITCHES BURN !!!

Mon, 08/22/2011 - 14:27 | Link to Comment Irish66
Irish66's picture

Memo to employees coming

Mon, 08/22/2011 - 14:31 | Link to Comment Randy Kruger
Randy Kruger's picture

Can't emphasize this enough.  Get your physical PMs under your direct, physical control if you see trouble brewing in the near-term.  Bank holiday imminent if BofA is allowed to go.

Mon, 08/22/2011 - 14:36 | Link to Comment Cone of Uncertainty
Cone of Uncertainty's picture

Just for shits and giggles call up your local bank and tell them you would like to schedule a time to come in and make a $10k withdrawal for cash.

Ask them how long it will take for them to "order" the extra fiat.

Mon, 08/22/2011 - 15:48 | Link to Comment gwar5
gwar5's picture

Did that and took a while. 

 

I called in advance and they said it would take a week for a special stash  >$10K, but said anything under $10K was routine. So I got a bunch of checks for $8K and went to that branch to cash just one -- they still didn't have the cash. I said to call around and find which branch could cash an $8000 check. They called 5 branches before they  found one --- 30 miles away.  Kicker: This was in Charlotte, NC, a banking town, home of BAC (but was not BAC). I wanted cash because of the SocGen and the Euro meltdown was just heating up. 

Got all the cash two days later after I called their high net worth client and he called the central operations manager and twisted their arm.  So, even if you called ahead it would take them a week for anything >$10K.

 

Mon, 08/22/2011 - 18:20 | Link to Comment Muddy1
Muddy1's picture

And if you take out >$10K in one day the bank has to do paperwork and report it to Timmy (I think it's Timmy).  Some folks started withdrawing weeks, or months ago,  Interestingly enough, there is a growing demand for in-home safes.  Liberty safe out in Utah have seen their sales go up significantly according to news reports via the internet.

Mon, 08/22/2011 - 21:13 | Link to Comment Stax Edwards
Stax Edwards's picture

My local 53 inFL which is fairly small covered it in short order on a monday morning.  All benjamins too

Mon, 08/22/2011 - 16:02 | Link to Comment Financial_Guard...
Financial_Guardian_Angel's picture

I can't see Obama Bin Lying letting BOA die.

A bank holiday or any news anywhere near this bad must be extinguished before it hits the MSM. I see a stealth bailout in the form of a takeover by Chase, etc. with implied government guarentees stuffed in every leaking hole of the hull. They will figure out a way to socialize the losses on MBS. Obama must or the election is almost surely lost as this will take 12+ months to flush down the drain.

I would love to see BOA and the underwater mortgage on my previous owner occupied residence go bye-bye. (Just dreaming, I know.) Some other lame-o lend-o will pick up the corpse.

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