Our quote of the day comes from Bloomberg’s Jonathan Weil, who keenly notes that:
At $9.85 a share, down 26 percent this year, Bank of America finished yesterday with a market capitalization of $99.8 billion. That’s an astonishingly low 49 percent of the company’s $205.6 billion book value, or common shareholder equity, as of June 30. As far as the market is concerned, more than half of the company’s book value is bogus, due to overstated assets, understated liabilities, or some combination of the two.
“We’re getting closer and closer to the country going into default. We could be out of money by August 2nd. How many people are surprised by that? How many people are surprised we still have enough money to make it until August 2nd?” – Jay Leno
If the experience in the states is any guide, a need for sudden, rapid cuts in the budget will lead to Congress simply “cheating” its way out of the hole with “off budget expenditures” and “independent authorities.”