How the Scam Works- Hudson

[qwerty]

Re: How the Scam Works- Hudson - Krugman

Here's Krugman's explication of the scam - in terms of the Geithner "put" which is given away for free by the Treasury:

http://krugman.blogs.nytimes.com/200...an-arithmetic/

[CanuckinTX]

Re: How the Scam Works- Hudson

Here's what people don't seem to understand about the government's recent bailout packages:

1. The credit crisis has destroyed all bank capital in the US. All of it. If banks were forced to mark their loans to market they would all fail. The FDIC would be called in, many depositors would lose their shirts, etc, etc.

Good thing the lobbyists are earning their pay and they've put FASB in their back pocket.

Mark-to-Market Lobby Buoys Bank Profits 20% as FASB May Say Yes

[marvenger]

Re: How the Scam Works- Hudson

Unless you're a really bright spark I think it just requires a lot of effort. copious reading until you've read so much stuff that you start to see the bullshit and recognise elements of truth better. i think you're right, hudson is getting, i thought that last one was short and sweet. but perhaps his previous length was to try and help the reader through the long arduous process. it all depends on the reader and where they are i guess.

[Kimmons]

Re: How the Scam Works- Hudson

This is a great graphic representation of what is said above

http://www.youtube.com/watch?v=n-arbfLTCtI

Very well put.

[GRG55]

Re: How the Scam Works- Hudson

Good thing the lobbyists are earning their pay and they've put FASB in their back pocket.

Mark-to-Market Lobby Buoys Bank Profits 20% as FASB May Say Yes

The "May" is now "Has"...:mad:

FASB Eases Fair-Value Rules Amid Lawmaker Pressure

April 2 (Bloomberg) -- The Financial Accounting Standards Board, pressured by U.S. lawmakers and financial companies, voted to relax fair-value rules that Citigroup Inc. and Wells Fargo & Co. say don’t work when markets are inactive.

The changes to so-called mark-to-market accounting allow companies to use “significant” judgment when gauging the price of some investments on their books, including mortgage-backed securities. Analysts say the measure may reduce banks’ writedowns and boost their first-quarter net income by 20 percent or more. FASB voted on the rules at a meeting today in Norwalk, Connecticut.

House Financial Services Committee members pressed FASB Chairman Robert Herz at a March 12 hearing to revise fair-value, which requires banks to mark assets each quarter to reflect market prices, saying the rule unfairly punished financial companies...

[c1ue]

Re: How the Scam Works- Hudson

The question now is: Weimar middle stages, or Great Depression 1930 sucker rally/Bretton Woods ending 1972 sucker rally