Archive for October, 2009
Bank of America loses $1 billion
The BAC third quarter report for Bank of America is not good! Management managed to lose another $1 billion. Word on the ground is that defaults are on the increase. Those that have racked up credit card debts to keep afloat and pay their mortgages on homes that are no longer worth a fraction of the outstanding debt are now having to pay the piper…
Lending institutions are now being hit with a new kind of defaulter – those with spotless credit are now walking away from mortgages and taking the ‘hit’ – it makes economic sense for the long term because of the vast imbalance between current house prices and mortgages..
Sachs and the City
Whilst Goldman Sachs prepares to handout billions in corporate bonuses to its staff, how is the rest of the US economy?
This news article grabbed my attention…
CHICAGO (Reuters) – The seven-bedroom, three-bath house in this city’s West Garfield Park neighborhood had once been someone’s American Dream.
But at a recent auction of about 100 foreclosed houses and condos, it was just Property No. 20 — and drawing no bids from a roomful of buyers despite its bargain-basement price.
“Any interest in this home at $7,000?” fast-talking auctioneer Renee Jones asked the crowd. “If not, we’ll move on.”
“The foreclosures are going to explode again.”