More Bank of America News

Everyone knows that Bank of America is in serious financial trouble.  They continue to look for ways to keep themselves solvent.  There latest is a real doozy.  They have announced they are selling some of their derivative investments from their Merrill Lynch subsidiary over to Bank of America.  And of course they transferred the ones most likely to default.

This means if they default on these investments, that they will now be covered by FDIC.  The US Treasury, through taxpayer dollars, guarantees the FDIC.  There are no guarantees for investors through Merrill Lynch, which is officially not a bank.

There are banking rules in place to prevent this that were designed to protect the FDIC insurance fund.  Any marginally competent regulator would immediately deny this.

However, the Federal Reserve has said they support the move.  This of course proves more of the dishonesty and corruptness of the Federal Reserve.  They are definitely not here for the public or for the American people.  They exist solely to protect the banks.

Although the FDIC has complained, once the move received the blessing of the Federal Reserve, it was a done deal. I’m certain that Bank of America and the Federal Reserve will get away with once again transferring bank losses to the taxpayers.

Although Occupy Wall Street is bringing some attention to the corruptness of the banks, items like this continue to occur right in our faces.  The only real way to solve this is to vote for a candidate that is willing to do away with the Federal Reserve.

Yea Europe!

So it was announced over the weekend that France and Germany agreed on a plan to “recapitalize” their banks, opening the way for another bailout of Greece.  “Recapitalize” is another word for bailout, which consists of printing money to give to the banks to keep them from going under.  Didn’t Europe already bailout Greece earlier this year?  And yet here we are again.

And I think you can count on that continuing.  If you don’t fix the underlying problem, then the problem will just keep coming up again and again.  This agreement doesn’t fix anything.  It just buys them more time.  The stock market is headed up today on this news.  But I wouldn’t get back in the stock market until they actually begin to address the underlying problem.

They didn’t stop the bleeding.  All they did was put a band-aid on the wound.

Which brings me to my next issue.  The financial media is reporting this as a great thing – Greece and the European banks are now okay.  I would suggest you quit reading the main stream media.  These guys don’t report correctly.  The news you need doesn’t get printed and the news that does get printed is usually heavily slanted toward the viewpoint they wish you to have.  I’m getting my news mainly off the internet now where I feel much more confident in getting the true news.

And lastly, did you read the bit about the Bank of Japan printing up more yen for the Japanese.  I’m not sure how much, but the word quadrillion comes to mind.  Japan has been doing this for year to no avail – their economy continues to sputter like it has since 1988.  You probably didn’t see the news because of the timing of the news release.  It was announced on the same day Steve Jobs died.  Why?  Japan doesn’t want anyone to know.  This is highly inflationary action.