Bank of America Dives into Mortgage Cesspool

Martin D. Weiss, Ph. D. gives a quick overview of what's happening in the financial market in the U.S. In this issue of Money and Markets, Dr. Weiss takes a closer look at Bank of America and their plan to buy Countrywide Financial.

Jupiter, Fla. (PRWEB) January 13, 2008 -- Martin D. Weiss, Ph. D. gives a quick overview of what's happening in the financial market in the U.S. Dr. Weiss takes a closer look at Bank of America and their plan to buy Countrywide Financial.

On Friday, January 11, Martin D. Weiss, Ph.D. appeared on CNBC and spoke about Countrywide Financial.

A quick overview of what's happening: Bank of America has recently announced it's going to buy Countrywide for about $4 billion in stock, and Bank of America thinks it's a bargain.

However, there is possibility that this is not a good idea because Bank of America is diving into the world's biggest mortgage cesspool, tens of billions in loans that are quickly turning sour. So, unless the plan is to stiff taxpayers with Countrywide's sinking mortgages and other bad assets, this deal could cost Bank of America a heck of a lot more than $4 billion.

The big picture: The value of $13 trillion in U.S. mortgages is sinking at an alarming pace, faster than believed possible. This means that asset values, book values, and earnings estimates based on mortgages are being widely and wildly overstated.

That's why Merrill Lynch has suddenly discovered a flood of mortgage losses on its books, and that's why it has just announced write downs of $15 billion, nearly double its earlier estimates.

"That's why Fed Chairman Bernanke has just warned the world about many of the economic troubles we've been warning you about for months," Dr. Weiss states.

To read this issue online, please visit:
http://www.moneyandmarkets.com/Issues.aspx?B-of-A-Dives-into-Mortgage-Cesspool-3

About Martin D. Weiss & Money And Markets    

Martin D. Weiss, Ph.D., founder and president of Weiss Research, Inc. and a leading advocate for investor safety, is a nationally recognized expert on domestic and international financial markets. With more than 35 years of experience, including many years in Latin America and Asia, Dr. Weiss has helped empower millions of investors to make better financial decisions through his monthly Safe Money Report and daily Money and Markets.

Dr. Weiss' keen understanding of foreign markets and the global economy has earned him a reputation for thoughtful, in-depth analysis that investors can rely upon to make informed financial decisions. Regularly called upon by the media for his independent investing guidance, he has been featured in publications nationwide, including The Wall Street Journal, The New York Times, Chicago Tribune, Investor's Business Daily, and Forbes and has also appeared on CNN and CNBC.

Throughout his career, Dr. Weiss has been an advocate for consumers and investors in the insurance, banking and brokerage industries, dedicating his time and resources providing analysis and data for Congressional testimony, constructive proposals for reforms in the securities industry and legislation for full financial disclosure as well sound accounting and fiscal policy. In November 2004, he launched the Sound Dollar Committee, a nonprofit organization dedicated to building a network of investors seeking to protect the nation's future by demanding honesty in government accounting, a balanced budget and sound economic policy.

Dr. Weiss is author of The New York Times best-seller, The Ultimate Safe Money Guide, which gave baby boomers a road map to grow their wealth safely. It was listed on the New York Times Business, Wall Street Journal, and BusinessWeek best-seller lists, as well as the Barron's Roundup for 2002.

Dr. Weiss holds a bachelor's degree from New York University, a Ph.D. from Columbia University and is fluent in eight European and Asian languages.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

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