Bank of America May Write Down $6.5 Billion

And the beat goes on.....

Imagine how much worse that's going to be once they own Countrywide?

Tom...Do you think the Countrywide deal will even happen since the Fed is playing the "lets bail out Wall Street Game"...something tells me the tan man may be rethinking the offer...as well as BofA...

I think that it will go through. I think it has no choice but to go through because no one will loan money to Countrywide otherwise. The "too big to fail" issue has been resolved by having them get bought out by Bank of America

Tom - great point. Add Countrywide in there and you've probably got a number at least double.

Hey, I like the new format with pictures. Morgan, how do we upload the photos?

Anyway, someone may want to send this to CNBC this morning, as they are all running around saying this all maybe over. MMMMMMMM, Yeah.... ABOUT THAT!!!!!

So home sales were up 2.9% from January, but DOWN 23.% percent from Feb. of '07. This is why I'm glad I'm in the mortgage industry and not in the stock market. Those people drive me CRAZY!!!!!!!!!!

Bottom line isthe bulk of this year's resets start next month and go through Sept. We need to see what happens THEN and if we're all still here on Oct. 1.

Don - you are right. We're on such a roller-coaster that no one really knows which way is up. I think it's pretty clear that we've got a ways to go down here, regardless of what one month says about demand.

I remember in August when everyone was talking about "getting it out of the system" so that we could move forward quickly. Laughable.

For the picture I think if you go to Disqus.com and set up an account you can add a photo.

Morgan..I will always remember the "Its Contained" speech of Bernanke..boy..its contained alright..as someone said, "To Planet Earth!"

You're right Ann, maybe contained to this universe!

Keep in mind Bank of America states that they may not actually need to incur this loss. BOA also has the potential opportunity to reverse this in the future and take it as a gain when they need it. Doesn't this create a tax advantage for BOA?

Believe it or not people this mess is slowly starting to unwind dispite all of the naysaying. Commodities are down, dollar appears to be stablizing, the federal reserve seems to have finally figured out how to manage the situation, 300 basis point drop in rates, The stimulus package, FHA loan limit increases, conforming loan increases, expansion of the agency's lending capcity by 200 billion, the federal home loan banks are buying 100 billion in mortgage securities, loans written today have extremely conservative guidelines, many real estate markets are actually quite stable, Vultures are actually buying in FL, the excessive number of employees in the business have been cut to low numbers, i could go on and on.

What more do you naysayers want? I suspect some of you wouldnt be happy until we are in a great depression. How very sad.

Mike, you make some good points, and certainly there has been better news with the dollar stabilizing and other events; however, for every piece of good news there is an equal dose of bad - consumer sentiment is down, most believe we entered a recession in December, one of the largest wall street firms just failed, we're not out of the woods on resets, foreclosures, write downs and inflation. So yes, we've had good news, but to say we want a great depression is silly. I am simply trying to help make sense of it all - since most mainstream media can't come close to explaining what is going on in a timely or accurate way.

We've had people telling us since August that signs are looking up, the NAR is still saying it's a great time to buy, we have government and banking officials say its ok, ratings agencies say the worst is behind us - and then Bear Stearns falls on its face. Enough with the spin. The truth, as always lies somewhere in the middle, but I would say that the pumpers outweigh the naysayers by several to one as it stands right now.

1st time on the board everyone. I had a big surprise when I signed in to my B of A account today, my home equity line available credit was virtually taken away with no notice, I had a $100k line with a low balance always paid on time, excellent credit history with several mortgages paid in full. This spells big trouble, this is a sign of desperation. I am buying SKF (ultra proshares financials) which has worked very well for me, and shorting the you no what out of BAC.. SV