Monday, August 11, 2008
Swept Under the Carpet?
"The Fed, Treasury, FASB, major banks and investment firms are colluding to delay the recording of losses as long as possible. The Fed is allowing toxic waste investments to be exchanged for Treasury notes. The Treasury Department will step in and buy the stock of Fannie & Freddie. The FASB will delay implementing rules that would actually let investors know the risk of these financial institutions. The banks will shift as many assets to Level 3 (management evaluated) as possible, to falsely value them, in order to delay the inevitable write-offs". Everyone will speak optimistically about the future in order to pump their stock prices up. Then they will try to lure more unsuspecting foreign Sovereign Wealth Funds to pour more money down this never ending hole.