Aug

15

Why Did We Bail Out The Banks?

Filed Under Economics | Leave a Comment

We could not have allowed the big banks to fail since they are vital to the powerful, monied interests that control elections, special interest groups and media that enrich the status quo serve the needs of the common citizen

Feb

13

Mark to Market Hilarity

Filed Under Economics | Leave a Comment

An amazing story from the New York Times. Trying to figure out what the price of worthless debt is? The institution owning it says 97 cents on the dollar, S&P’s “model” says it’s worth 87 cents on the dollar, but (in my best Bob Barker impression) the ACTUAL RETAIL PRICE is…

38 cents!

Yes, the last traded price for that particular bond was 38 cents, less than half of what both the institution and the S&P model say it was… you don’t have to be Treasury Secretary to realize that banks holding these assets at inflated values are simply kidding themselves.

As CEOs talk up their books, even the “clean” ones like GS and JPM, don’t forget that since they are not forced to mark to market, we are not getting full disclosure. Stay away.

To read about the financial problems we are in, read here.