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Video - Chris Whalen - Recorded yesterday

Much to absorb, though it's not entirely new material if you follow Whalen.

• "We understand what the problem is for Bank of America. They are insolvent. They still have huge losses to take on their mortgage book, and balance sheet. They also have to deal with everyone wanting them to buy-back mortgages."

• "By this time next year the majority of home sales will be involuntary - more foreclosure sales than normal sales."

• "We haven't seen the peak of foreclosures yet. That will come 12 months from now."

• "California will default on its debt."

• "A whole slew of sovereign defaults in Europe. There is no growth."

• "QE and QE2 are just hidden subsidies for the big banks."

• "Bank of America is in the worst shape of any U.S. bank."

• "Bank of America senior bondholders will have to take a hit, convert debt into equity."

• "There is no doubt they will have to be restructured."

• "Ireland is small. Wait until we get to Spain."

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