Death by Foreclosure

After the DJIA lost 251 points, Moody’s finally released its rating cuts for 15 banks. According to Zero Hedge, four firms were cut by a notch, 10 firms were downgraded two notches, and only one firm was cut three notches, with Morgan Stanley surviving with a two level drop rather than the three that was expected.

Bank of America’s long-term senior debt was cut to Baa2 with a negative outlook. Bruised, but the Too Big Too Fail gang continues on.

Fannie Mae reported last month that it made money in the first quarter and wouldn’t require more money from the taxpayers (for now). The company reported a quarterly profit of $2.7 billion. However, the New York Times reports that the GSE received $116 billion from Treasury over the past three and half years while paying back $23 billion in dividends. At the same time, Freddie Mac needed $72 billion in bailout money while paying back $18 billion.

But while BoA, J.P. Morgan, Fannie and Freddie live on, Russia Today (RT) reports that for more and more underwater, foreclosed-upon homeowners, suicide is the only answer. Death by foreclosure is quietly going on around the country reports the RT. And as more depressed people are evicted from their homes the death toll will continue to rise.

The foreclosure suicide story is tragically under reported. (more)