Hmmm, BofA and Citigroup (and most likely a bunch of other banks) forge foreclosure documents and it all comes out just as we’re discovering that a lot of those self-same mortgages were fraudulently bundled and sold as ‘securities’ thus burdening other financial institutions with toxic/negative value assets which was one of the reasons for our economic melt down in the first place.

And NO one’s getting investigated or has gone to jail? In FACT they’ve gotten bailed out and put the country’s economy on an even slippery slope yet no investigations, no hearings in Congress.

Not even the demagogic left wing Democrats are descrying the bailout of FAT CAT BANKERS. How can this be? I thought the D’s were all about ‘protecting the little people’  n’ stuff?

Notice who’s awfuwy awfuwy qwiet? Bawney Fwank that’s who. The House half of the daring duo (Dodd in the Senate) that shielded Fannie Mae and Freddie Mac from closer scrutiny and getting audited along with putting forth financial institution rules that will cause millions of small customers of banks to have to pay extra fees to use their debit cards or stop using them (and there goes internet sales) and didn’t help anyone except the BANKS.

Especially the ones who gave them (Frank and Dodd) special deals and donations. (can you say Countrywide Financial?)

Dodd at least had the good grace to quit the Senate but Frank is still there. But  he must be wabbit hunting cause we have heard anything from him lately.

The reason the left isn’t decrying bankster shenanigans is that they haven’t been given the talking points to do so. They whine when the R is in charge and now its the Rs turn to point out corruption. Yeah, I’m pretty jaded, but its true.

I’ve been reading up on Wall Streets involvement in the Bolshevik Revolution and I learned some wild stuff backed up by the State Dept files and telegrams:

1. Guaranty Trust Company, a JP Morgan operation, finance Pancho Villa and helped with arms and money set up the Caranza regime in Mexico, the world’s first communist government.2. New York City Fed Chairman William Boyce Thompson wired the Bolsheviks their first million dollars and financed Soviet propaganda.Look up Wall Street and the Bolshevik Revolution and you will find themes relevant to our present day. The playbook remains unchanged because it has been so profitable for them. They get control of the media and lock up the countries wealth through socialism, themselves always being exempted. Check it out.

Didn’t Buffet leave money to the Gates Foundation to avoid paying taxes?  Turdhammer.

The thing that must be understood about Buffet’s BOA buy is that he is NOT buying the common stock available to us bitter clingers.  He is buying a special preferred issue which pays a 6% dividend (try getting that in a T-bill.)  Preferred stock is also a senior creditor in case BOA is not too big to fail.

Buffet is essentially making a LOAN to BOA at favorable terms to himself.  I doubt he would be interested in the issue otherwise.  But no one should take it as a sign of confidence in either the bank or the economy.  If Buffet really thought BOA was a great bargain, he would buy the common like he did for Coke, Amex, etc.  A healthy functioning business like Coke doesn’t need to give Buffet or anyone else 6% interest to get them to invest.

That’s the Buffet MO, though, with those in distress.  BAC’s main danger is market panic – their chart sucks – and there is no guarantee of federal help in the current climate.  So Buffet’s reputation of snatching up bargains is far more helpful in the perceptions it creates than in the actual investment, only around 7% of their capitalization even at the current low price.

Therefore he demands and gets the more favorable class of stock, but his investment seems safe enough.  The consensus estimate for BAC in a year is nearly $14, and the projected P/E will be just over 5.  Banks don’t lose money, their only problem is capitalization and the quality of their investments.