Bank of America going down?

Just ran across this while taking a quick scan of the news headlines before going to bed.  The headline on CNN says “BofA may need billions for Merrill“.

In reading the story, I saw this nugget: Bank of America, which had been viewed as one of the strongest banks in the country, may be buckling as the nation’s economy worsens.

It has also taken over two ailing companies that thrust it deeper into the most troubled sectors of the financial system. Not only did it take a big gamble on its $24 billion acquisition of the faltering brokerage titan, but it also bought battered mortgage lender Countrywide Financial early last year.

How many trillions are we (the US government) going to print up in funny money to bail out these stupid people?  BoA tried to catch a falling knife when they bought Countrywide and Merrill Lynch.  They overpaid in order to expand because they thought they were in good shape.  They weren’t.  And BoA is in worse shape today because they bought crap companies with crap assets.

Now they want us to bail them out.  Screw them!  Have you ever heard the phrase “throwing good money after bad?”  With all these bailout programs, we’re actually throwing bad money after bad.

Face the facts people – the US government is broke.  We don’t have a dime to bail out anyone.  And the result of running the printing presses overtime to make money out of thin air is gonna be an inflationary disaster.

Let these bad companies and banks go under.  Yes, it’ll be a painful mess, but it’s going to happen sooner or later anyway.  I say we let it happen now and keep the dollar from becoming worthless in the near future.  The only way I see to protect your assets is to buy gold.  (You’ll thank me for this advice a year from now.)

gk

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