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..
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