Troubles on the horizon?

[Rich Weese]

I really didn't want to list anything negative on a thread today but they say three strikes and you're out. Here are my three strikes for the day.

one – Bank of America says they are going to close at least 750 branches during 2012 in addition to the 30,000 people that they have already stated are going to be laid off.

two-S&P is rattling the sabers again with regards to lowering the credit rating of multiple countries in Europe. Some of these may be reduced two levels beginning with France and might also include Greece, Italy, and Portugal and Spain. I don't see how the troubles in Europe will not eventually affect our Banks and economy.

Three – the story on foreclosures is not getting any better. Realty Trac has predicted there would be 25% more foreclosures this year than last year. 1 million homes are projected to go back to the banks during 2012. There are currently 12 million homes underwater in the United States. Of this 12 million, 3.4 million are currently in default and scheduled for foreclosure. There are 2 million vacant homes for sale at the present time. Realty Trac is projecting an additional 1 million added to this number in 2012 and an additional 1 million more in 2013.

I realize this may offer some tremendous buying opportunities but with some of the other scuttlebutt going on in items the government may try it does make it a little bit scary. Will the government really get into the rental business and take a bunch of these vacant homes and try to run a rental business out of it? This would affect my business of rentals as I would be competing with the government. Would they play fair? Would they run this business any better than any other business that they are currently running?

Just looking for any additional input from BP members as to why these should be of concern to us. Rich