Friday, February 6, 2009

Bury the dead

Banks rebound on hope of accounting

This would mean that banks don't have to write down assets until they actually go bad. At presents banks have been going bust on the basis that their assets marked to market represent a huge loss killing their capital adequacy. Given that capitalism only works as an act of faith and faith is impossible if there is too much reality, there is a precedence that hiding things can work. I've heard someone compare mark to market as the equivalent of the gold standard in the current scenario. If this had been suggested on the upwsing when banks were revelling in the incredible apparent profits that mark to market gave them, I'd have been totally in favour. It would have actually helped stop the bubble inflating.

Posted by bellwether @ 10:46 AM (2921 views)
Please complete the required fields.



2 thoughts on “Bury the dead

  • Fraud. Pure and simple degradation of the financial system.

    These losses need to be taken by someone and it should be people that bought overpriced houses. Any other “solution” is morally and financially wrong.

    Reply
    Please complete the required fields.



  • Jackas – which incidentally is the finest TV programme of all time – what do you think about my point that mark to market seriously contributed to the bubble on the upswing

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>