See Zerohedge here.
Specifically we are looking at Bank of America, which with a forecast surge in Earnings from ($2.5) billion to $10 billion accounts for 14.1% of the entire change in S&P earnings forecasts. And since the S&P is simply the Earnings number multiplied by some multiple, all consensus views that have 1400 as their 2012 year end forecast rely on bank of America to account for nearly 20 S&P points!
I’m not which random orifice they are pulling this data from, but in the end it doesn’t matter. Projections like this are bitterly ludicrous. They will in no way ever come to fruition. BAC is currently trading under $6 a share. Relying on this insolvent corporation to account for 20 S&P points by the end of 2012 is simply not going to happen.
This is the kind of large scale movement that you need to keep an eye on. While there is nothing you can do about it, it is sound intel and should serve as a blatant warning that the disconnect between the elites and reality is wide indeed.
In this thread.
See this post:
It seems like those people in Wall Street are trying to channel the anger to Washington through the media. The last Bank of America ticker shows the fraudulent parties are still active.
Management vs. Labor. Interesting.
I simply do not see how anyone out there who is capable of reading financial statements would say that BAC is anywhere near solvent.
At sub $6 a share, it would seem that based upon that alone, they would need recapitalization on a grand scale. Take their “off balance sheet assets” into account and they, along with their giant brethren were all completely insolvent literally years ago.
Zerohedge regales us:
As of milliseconds ago, one share of Bank of America stock is now $5.99, a level it has not seen since the apocalypse back in March 2009, and upon penetrating it, a huge volume surge followed as an avalanche of sell orders were activated. However, we are confident this will be temporary. According to largely amusing rumors, Bank of America will follow through with its expropriation procedure and withdraw $5 from longs’ brokerage accounts for each share they hold, effectively doubling the market cap in the process. So you see: there is nothing to worry about.
“If we couldn’t laugh we would all go insane…”
Is this the tipping point?
No idea. Plan accordingly.
Watch BAC today.
Zerohedge commented that if it falls below $6, that TARP2 might be in the works.
Not sure if $6 is the magic number here, but I would say there is a pretty good possibility that TARP2 is on the horizon. At this juncture, inflating the currency further is likely the only Keynesian move that makes sense. Put on your tinfoil (just a bit) and see how many excellent opportunities Opfor is afforded with a radically inflationary environment. I’m sure they are just giddy at the possibilities.
These big banks are insolvent. All of them. Keeping up appearances is all they have.