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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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.

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...

ratso's picture

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

eureka's picture

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

Thomas Jefferson's picture

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

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.

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.

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.

New_Meat's picture

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

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.



sunnydays's picture

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


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,

ZeroPower's picture

Never heard of a stock halt due to CDS premia. 

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.

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.

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

NewThor's picture

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

It's all baked in the cake.



citta vritti's picture

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

Mr. Mandelbrot's picture

Crash and burn BAC bitches . . .

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



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.

sunnydays's picture

Couldn't have said it better!

Taku's picture

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

IQ 145's picture

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

BaBaBouy's picture

GoldToTheMoon Bitchez ...

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.


bbq on whitehouse lawn's picture

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

slaughterer's picture

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

Little John's picture

So long Bedford Falls, hello Pottersville.

LawsofPhysics's picture

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

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?

StychoKiller's picture

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

Fukushima Sam's picture

Meltdown, bitchez!

Cash_is_Trash's picture

8 bucks from 1,900

runlevel's picture

serenity now.. insanity later.

spiral_eyes's picture

"the recovery"

nice one b-o. 

1100-TACTICAL-12's picture

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

RacerX's picture

higher is better, no?

Silvergood's picture

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

flacon's picture

Bring the chaos. It's about time. 

Cash_is_Trash's picture

Indeed, paper is becoming ever-more worthless

Economic Bifurcation, bitchez

flacon's picture

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

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. 

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 

Raynja's picture

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