Bank of America to buy Countrywide for $4 billion.
Every time I think I’ve moved all my finances away from BofA they swoop in like a pathalogical vampire. Aren’t they approaching their legal market share maximum? I guess this quote says it all:
“Federal law also bars banks from acquisitions that would increase its market share above 10 percent of U.S. deposits, a limit that Bank of America is nearing… Bank of America could easily lower the total amount of money held in deposits by lowering interest rates and losing deposits to competitors.”
Great customer-service strategy. Oh, and a great long-term growth strategy, too. Yeah. How can they, with such already-large home mortgage leverage, afford to take on more mortgage-backed assets whilst encouraging attrition to reduce non-mortgage assets? I don’t get it. Maybe I should celebrate such an illogical business plan?
The whole financial sector is making me want to puke right now - their pundits are on TV every day whining for interest rate cuts. Low interest and high inflation is fine for those who are addicted to debt. Why is the Fed supporting this addiction? Wouldn’t a better idea be to raise interest rates to help control prices and encourage saving? It would sure do a better job than those stupid “feed the pig” PSAs.
My savings is drying up not from my spending habits, but from inflation and high fuel and food prices (something most inflation numbers ignore so that they can look better, of course), whilst the government and the financial services sector chums it up and bails out the debtors and the house-flippers (and at the same time, conveniently, their lenders). Sigh.