Bank of America may need $34 billion in government handouts, according to a leak to the press ahead of the official stress test results tomorrow. That’s strange, because we seem to recall Ken Lewis announcing on April 20 that “we absolutely don’t think we need additional capital.”

We all know the U.S. government is in debt up to its eyeballs. Moody’s is already threatening to downgrade the country’s debt rating due to unfunded liabilities for Medicare and Social Security.