It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

B of A, Citigroup "In A Year, Gone!"

page: 1/
5

log in

join
share:

posted on Feb, 16 2009 @ 03:58 AM
link   
www.cnbc.com...

Those were the words this week from Don Straszheim of Straszheim Global Advisors. He was speaking at the annual forecast dinner for the CFA Society of San Diego. "Gone?" I asked him in disbelief. "You mean, like no more Bank of America [BAC 5.57 -0.30 (-5.11%) ] Versateller ATM for me?" Well, no, he told me. "Just gone as in no shareholder equity left. I don't see how B of A or Citi [C 3.49 -0.12 (-3.32%) ] can be worth anything."

Straszheim gave an impassioned speech to the crowd of finance professionals. He was joined by Liz Ann Sonders, Schwab's Chief Investment Strategist. I moderated the event, taking notes furiously.

Forecasting is always a perilous endeavor, but here are the highlights of what these two pros see looking ahead, based, in part, on looking back.

Straszheim, a well-known expert on China, says we are in the middle of a "global buyers' strike."

What's more, he says the stimulus plan "makes no sense...it's crazy". Why? It's too big, for one thing. Any stimulus check or tax cut he gets would go into savings, not into spending, "because that's the right thing to do." Instead, Straszheim would prefer a package of $250 billion, with most of that going to "those bleeding the most," that is, the unemployed, etc.


Again, we're seeing the truth starting to leak out to people. You can paint a pretty picture for only so long when everything around you is telling you that things are not what they seem. Both B of A and Citigroup are WAY overleveraged and no amount of bailout money that the Fed can print up can save them. Our own GDP for the last 5 years couldn't save them. And yet we're going to continue to throw money at them. We will continue to fly a ghostship with fake money in our sails.

Edit to add:

They may be gone quicker than this. If things keep going the way they are, the governments exposure to this calamity will collapse the entire house of cards, and there will be no one to continue the cycle of denial, which has thus far lead the most powerful nation on Earth to stray into the grip of poverty.

We shall see.

[edit on 16-2-2009 by projectvxn]



posted on Feb, 16 2009 @ 08:40 AM
link   
OK, so say Citi and B of A collapse. What happens to all the debt that people owe to to them?



posted on Feb, 16 2009 @ 11:50 AM
link   

Originally posted by sweetpeanc

OK, so say Citi and B of A collapse. What happens to all the debt that people owe to to them?


In the fine print, it's all in the fine print.

What happens, is that all loans start getting called in for full payment, usually 30 days. So if you have a home, car or whatever. You will lose it unless you can satisfiy the debt.

This is why you want to be debt free what it hits the fan.

This is why people like Gerald Celente tell you it's going to be worse than the 1930's.



posted on Feb, 16 2009 @ 12:21 PM
link   
Default. Defaults like these, as the poster above me had mentioned, will make things a lot worse than the 1930s. These large companies are also tied to the bond and derivative market in many way, and could force those markets down. It's would be like an economic nuke.



posted on Feb, 16 2009 @ 12:27 PM
link   
reply to post by projectvxn
 


B of A,Citigroup and Am.Ex. are pulling out every stop.They have added extra fees and increasing interest rates on nearly everyone.Just wait until all those personal bankruptcies land squarely in their laps.We have only begun to see the downfall of these predatory loan conglomerates.



posted on Feb, 16 2009 @ 12:32 PM
link   
reply to post by daddyroo45
 


They're going to try to drag down Americans along with them. But what they don't realize is that Americans will be alot better off than they think, and we will watch them fall with glee.



posted on Feb, 16 2009 @ 01:03 PM
link   

Originally posted by sweetpeanc

OK, so say Citi and B of A collapse. What happens to all the debt that people owe to to them?


If the companies "fail" the FDC and the Federal Reserve would negotiate, and probably pay, to the sell the companies off to other large banks.

Or Nationalize.

But they would never declare bankruptcy or anything of that nature.

So your debts would be sold, perhaps to more then one bank .. car loan to this bank, mortgage to that bank, etc, etc.

You won't even notice.. most people don't notice when their mortgage is sold, which can happen frequently.

Loans won't be Called, and they won't disappear.



posted on Feb, 16 2009 @ 01:20 PM
link   
I have $13,000 of debt on my bank of america card I racked up when I opened by own business a year and half ago. I was late on a payment (by 2 freakin days!) and they raised my interest rate from 16% to 27% and will not lower it until I have made "on time" payments for 6 months straight. I am barely scraping by right now, as the economy has hampered the growth of my new business and I am suffocating under this debt, but what can you do? I got myself into this mess, I guess I'll have to hold on and scrape my way back out. I got to tell you though its effecting my health bigtime. I can't sleep, I've gained 30 pounds in year, and feel like crap all the time. This isn't what I spent 8 years of my life and $150,000 in student loans to end up like. Sorry for venting, but I'm struggling right now.



posted on Feb, 16 2009 @ 01:32 PM
link   
Would be no surprise if those two banks had their stock go to zero. Freddie and Fanny are under a buck and a couple years ago that was unthinkable.



new topics

top topics



 
5

log in

join