{"id":26315,"date":"2011-10-04T13:57:19","date_gmt":"2011-10-04T13:57:19","guid":{"rendered":"http:\/\/astrologyexplored.net\/home\/?p=2876"},"modified":"2011-10-05T00:09:56","modified_gmt":"2011-10-05T00:09:56","slug":"the-astrology-of-finance-bank-of-america-to-go-bankrupt","status":"publish","type":"post","link":"https:\/\/astrologyblogger.com\/?p=26315","title":{"rendered":"The astrology of finance: Bank of America to go bankrupt?"},"content":{"rendered":"

\"Bank<\/a>Dire warnings of the Bank of America, America\u2019s largest bank by assets<\/a>, being on the edge of bankruptcy cycle through the news media like scavenger birds circling over a dying calf as BOA suffers day after day of not actual banking losses but stock market losses<\/a>.<\/p>\n

Listen to what this analyst has to say<\/a>:<\/p>\n

\n

Bank of America has over $100 billion in mortgage liabilities, says Chris Whalen Co-founder of Institutional Risk Analytics.<\/p>\n

On a web broadcast published on KingWorldNews, he advocates “the classical American way of dealing with this problem”– complete and total restructuring through Chapter 11. Before its too late.<\/p>\n

He says, “The only sane way of fixing this and I mean fix it so that Bank of America comes out of the process restructured, ready to support growth, support leverage, is a classic chapter 11…”<\/p>\n

His point: Countrywide’s bond trusts are worthless, were never properly constructed, and don’t protect investors at all. Bank of America is on the hook for all of that, and while its subsidiaries are well capitalized, the parent company is bust. The only thing to do to fix this problem is to unmake $100s of billions worth of bond contracts.<\/p>\n<\/blockquote>\n

While the American people have been fed the line that the current economic crisis was caused by large number of homeowners defaulting on their loans, the truth is much more insidious:<\/p>\n

\n

If you\u2019re thinking that our economic crisis<\/a> was in some way the fault of homeowners who couldn\u2019t afford their mortgages, please consider the following:<\/p>\n

At the end of 2007, there were roughly $1.4 trillion in sub-prime mortgages in this country.<\/p>\n

If \u201cirresponsible sub-prime borrowers,\u201d caused the meltdown, then $1.4 trillion would have solved the problem in its entirety, right? Because that\u2019s all the sub-prime loans there were.<\/p>\n

But, between the Federal Reserve, the FDIC and the Treasury over $13 trillion has been pumped into financial institutions to fix the \u201chousing correction,\u201d which is what Hank Paulson was still calling our economic collapse as of November of 2008.<\/p>\n

At the end of 2008, there were $11.9 trillion worth of mortgages in this country. So, with $13 trillion, the government could have paid off every single one\u2026 and still had a little over a trillion dollars left over.<\/p>\n

But there\u2019s a lot more to the economic problem than that, explains Nomi Prins, my new favorite financial uber-genius and author of \u201cIt takes a Pillage<\/a>.\u201d Wall Street had been playing the leverage game\u2026 somewhat like they did in the 1920s, I suppose\u2026 but on mega-steroids. Leverage means borrowing on assets, and Wall Street banks were leveraged by 30:1, commercial banks by 10:1, not including their \u201coff-the-balance-sheet\u201d holdings, which could make their leverage ratio significantly higher in many cases.<\/p>\n

So\u2026 in \u201cPillage,\u201d Nomi Prins explains in terms anyone can understand that factoring in the leverage at 11:1, we\u2019re looking at a $140 TRILLION economic problem\u2026 yes, you read that correctly\u2026 that\u2019s trillion, with a \u2018T\u2019. Our Wall Street bankers, through the abuse of the securitization process and excessive amounts of leverage, created a potential tab of $140 TRILLION for the people of this country to pick up.<\/p>\n<\/blockquote>\n

If you have to read that again, go ahead, I\u2019ll wait. Because it bears re-reading.<\/p>\n

Now do you have the scope of the problem? When we bailed out the banks we weren\u2019t bailing out the sub-prime mortgage market. We were bailing out Wall Street from the defective securities products they created out of the sub-prime market. <\/p>\n

And even as the banks abused the bail-out process they continued to abuse their customers. <\/p>\n

\n

\u201cEarlier this year the Federal Reserve determined that the interchange fees Visa and MasterCard fix for big banks grossly exceed the cost of processing a debit card transaction by some 400%. These hidden fees were designed to boost big-bank profits by charging small businesses and merchants every time a debit card was swiped. And profit they did. Bank of America hauls in billions in debit interchange each year.\u201d<\/p>\n<\/blockquote>\n

The Durbin Amendment reigned in that dog and pony show starting October 1, 2011 and as a result BOA announced a new monthly fee to take effect for anyone using their debit card to make purchases. <\/p>\n

So is Bank of America really on the hooks as the analyst says and needs a bankruptcy to restructure their debts?<\/p>\n

Bank of America operates under the banking charter issued to its originating bank, the Bank of Italy, founded in San Francisco, CA in 1904 by Armadeo Giannini. This charter was granted on March 1, 1927. While we do not have an official time, I set the time at 9:00 AM, the start of the business day, a practice I\u2019ve personally found useful in evaluating businesses, though this is not a standard astrological practice. The location is set in San Francisco, as this is where Mr. Giannini started his bank. <\/p>\n

This charter to operate as a bank was set when the Sun was conjunct Jupiter in the sign of Pisces. This Jupiter\/Sun combo squares Mars in Gemini and Saturn in Sagitarrius. Mercury, the planet of commerce as well as communication makes a stress aspect (inconjunct) to Neptune. Can it be fair to say that this entity is not entirely above board in its business dealings? If we were to evaluate this as the chart of a person, we might say that this is a person who talks out both sides of their mouth. And with the Sun\/Jupiter combo making a trine to the planet of power and control, this is one entity that has no problem keeping on top of a situation. <\/p>\n

As far as transits go, Chiron\/Neptune is just beginning a long slow transit of the Sun\/Jupiter natal combination, and with the planet of abundance, Jupiter making a friendly energetic connection to that combo and a trine to Pluto BOA is considering bankruptcy as an option. But if it does proceed with that option it is isn\u2019t because they need to reorganize their debt but because they want to. Because in the long run it makes a better balance sheet to tell investors, \u201cSo sorry we aren\u2019t able to pay you.\u201d Because it gives a really good excuse to layoff more employees. And those employee pension funds are just too juicy to ignore since pension funds magically disappear during a reorganization. (I guess not having to pay taxes<\/a> on receipts of investments in pension funds just isn\u2019t enough incentive anymore.) And once again big business can stick it to their customers and the people who labor for them in the interests of short term gains.<\/p>\n

\"Bank<\/a><\/p>\n

Image courtesy of a Creative Commons license as described by Flickr<\/a>.<\/p>\n

\"\"<\/a>\"\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Dire warnings of the Bank of America, America\u2019s largest bank by assets, being on the edge of bankruptcy cycle through the news media like scavenger birds circling over a dying calf as BOA suffers day after day of not actual … Continue reading →<\/span><\/a><\/p>\n

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