1st It's Citigroup, Now Bank of America Is Following Suit

Posted by Kris | Friday, March 13, 2009 | | 0 comments »

Last night, was a strong rally upwards extending Thursday's rally. Well today is Friday the 13th, the dreaded date for Wall Street.

Bank of America has also confidently announced that they are profitable in the 1st 2 months of 2009 and expected to be in the BLACK by the end of 2009. Following Citigroup's lead. They really need to take into account the proverbial "counting the chick before the egg hatches" 

And now this: (Hopefully BAC knows how to identify correctly "well affluent" customers. That was the problem in the first place in the subprime crisis)

(Reuters) - Bank of America Corp is seeking to produce more "jumbo" mortgages, which can range from $417,000 in most areas to as much as $729,750, Barbara Desoer, the bank's head of mortgage, home equity and insurance services told Bloomberg in an interview.

"Bank of America has balance-sheet capacity and we've allocated it to jumbos given our presence in some of the states and regions where that's important," Desoer was quoted as saying.

Well, China the huge buyer of US treasuries is damn worried about the current state of the US economy.

China's leaders are worrying about the country's U.S. dollar assets. That's about all they can do.

Chinese Premier Wen Jiabao Friday used his annual press conference to fire a shot across Washington's bows, saying he's "worried" about the safety of China's U.S. assets. His words sent a chill through the Treasury market, and urging the U.S. government to "maintain its credibility" will ruffle feathers, too.

China's central bank followed up later by raising concerns over the U.S.'s fiscal deficit.

Rhetoric aside, it bears repeating that China will find it hard to make a meaningful shift out of Treasurys, the prime current channel for investment of its $1.95 trillion foreign exchange reserves.

Anime Pic: Hellsing