Wednesday, August 31, 2011

THE BANKING INDUSTRY

STOCK MARKET, BofA AND WARREN BUFFET.
In keeping with the theme of many recent posts by me, I want to weigh in again with a commentary on the government's sickening attempt to ride banks. Any quotes are from the Wall Street Journal.
The WSJ asked a good question: "How much cost and uncertainty can the government impose on a U.S. Bank before it buckles under the strain?"
Here are some points to bolster the need to get to the bottom of this pain in the Banking Industry.
$$$ Bank of America (under the new Dodd-Frank fiasco) are being stress-tested.
$$$ The government wants BofA to pick up the tab (for the ruin they {The U.S.}) have caused. Then once they ruin Bank of America they will have the taxpayers pick up the tab for this failure.
$$$ But Bank of America is doing better. They have $400 Billion in cash. They can fund their problems without much difficulty.
$$$ Warren Buffett's Berkshire Hathaway takes a stand. They're trying to change the discussion. "Washington flirting with bank nationalization."
$$$ The mortgage problem that Bank of America has primarily stems from the acquisition of CountryWide Financial, which the government cheered at the time. Funny, how the government turns on people.
$$$ A lot of the current problems also stem from "Robo-Signing" foreclosure paperwork, but the government has failed to uncover any actual victims. But the government has demanded billions from these banks.
$$$ New York's Attorney General, Eric Scheiderman, is driving a swath of destruction because he's so bone-headed. Get this: he was kicked off the negotiating committee by the Attorneys General of the other states. He wanted to interrupt the settlement between Bank of America and Mellon Bank.
$$$ The new financial bill, dubbed Dodd-Frank should be repealed. It's almost as bad for America as ObamaCare.
$$$ Speaking of which, all these banks from Main Street to Wall Street are having and will continue to have problems fighting "Obamanomics."
CONCLUSION:  Since I started writing these blogs about the Buffett/BofA deal, the stock is up over a dollar, a 12% move. The stock looks like it wants to go up, the only thing holding it back are two forces that have come together to cripple American Free Enterprise---GOVERNMENT GRAVITY. The new G-Men.
Stay tuned. I have more comments to make about this. I'll try to do so tomorrow.
WADE

No comments:

Post a Comment