Bank of America is suffering due to faulty housing mortgages and experienced an $8.8 billion quarterly loss. They plan to sell assets and shares, and cut about 30,000 jobs in NC. They are so guilty of dealing out faulty mortgages to people and not checking credit, income, or having a feasible down payment plan. In the end, people couldn't afford their houses and went into foreclosure and the bank is suffering because they have millions of dollars in faulty mortgages on their hands. How will they cover the cost without the U.S. bailing them out again? I don't think the government will bail them out a second time, absolutely not after made the same mistake. Bank of America is definitely "too big to fail" but at the same time, if they do fail, the whole country will feel the impact. I think they're in serious danger and need help and other banks will start to pull ahead because people simply won't trust BofA anymore.
We also discussed how Congress is planning to pay our nation’s debt by the end of the fiscal year (which I learned is Oct. 1- Sept 30!). They put together a committee to figure out how to come up with $1.5 trillion, but what were they doing all summer? I think it’s ridiculous that they have one of the most important jobs in America and seem so careless about it. All of their projects are delayed or expiring soon. Their two solutions are either to cut spending or raise taxes, but either side can agree on anything at this point. My solution would be to cut spending on small programs or welfare, but that’s just my opinion.
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