Banks more problems

Bloomberg: Bank of America said,” profits dropped for a third straight quarter as the company set aside $6.01 billion for bad loans.”   The bad news is blamed on passed due credit card billings and residential foreclosures.  Bank of America is acquiring Countrywide Financial group the largest residential lending in the U.S.  In-the-mean time the Bank of England is planning a bond swap for mortgage securities to help credit liquidity.   This move is similar to The U.S. Fed last month .

The Dallas Morning News reported that March homes dropped 2.5% and show no sign of improving.  The sale of new homes is at a 13 year low.  Property values are dropping and in some cases owners are walking away from their homes.  Other sources reported that 1 in 7 homeowners are worried about making timely payments on their mortgages.