Bank of America: Four-alarm emergency, possible failure imminent — and BOA is just the canary in the coal mine
You know how all of the chatter about “the recovery” during the past couple of years has sounded like pure propaganda when held up against real economic life on the ground for real people in the United States? You know how that kind of talk has all hinged on how the big corporations are doing, as opposed to the rest of us? Well, it looks like reality may be about to assert itself and expose the lies. A true apocalypse, in the best sense of the term: “An Apocalypse (Greek: ἀποκάλυψις apokálypsis; ‘lifting of the veil’ or ‘revelation’) is a disclosure of something hidden from the majority of mankind in an era dominated by falsehood and misconception, i.e. the veil to be lifted.”
While nobody was looking, America’s largest bank approached the brink, tested the wind, lifted a foot, and started teetering. Well, to be fair, some people were looking. Wall Street has been worried about Bank of America for the better part of a year. Its stock price has declined from about $15 a share in January to a low of $6.01 this week, shedding nearly 30 percent of its value in the past month alone. There are rumors that JPMorgan will take it over. There are suggestions that Treasury Secretary Timothy Geithner should bail it out. There is talk of another credit crunch. Bank of America might just be the beginning…Unfortunately, this story is bigger than America’s biggest bank. Bank of America is just the most badly bruised fruit in a rapidly rotting basket…[T]he real economy never bounced back. Families never got back to buying big new houses. Consumers never got back to spending their money. Businesses never got back to hiring new workers. Companies never got back to investing in themselves…So worry about Bank of America — which, if it is not facing an immediate crisis, is still looking at a very difficult path to profitability. But worry more about the real economy and the banks that rely on it.
Full story at Salon.