We are a commune of inquiring, skeptical, politically centrist, capitalist, anglophile, traditionalist New England Yankee humans, humanoids, and animals with many interests beyond and above politics. Each of us has had a high-school education (or GED), but all had ADD so didn't pay attention very well, especially the dogs. Each one of us does "try my best to be just like I am," and none of us enjoys working for others, including for Maggie, from whom we receive neither a nickel nor a dime. Freedom from nags, cranks, government, do-gooders, control-freaks and idiots is all that we ask for.
...one of America's greatest and most precious dialogues between black and white took place in a sound studio in New York City back in 1959. That was when the immortal jazz great Miles Davis defied some serious criticism coming from the black community and chose the white Bill Evans to accompany the famed group on piano. Why, the black community wondered, when there were so many great black jazz pianists, did Davis pick Evans? The answer is quite simple: Bill Evans was the best (sorry Art Tatum fans). The result? The best selling and most beautiful jazz album of all time: Kind of Blue.
'Jon Stewart, late in the Daily Show last night to Newsweek pundit Fareed Zakaria: "Iíve watched this thing unfold from the start and hereís the great fear that I have: What if Bush, the president, ours, has been right about this all along? I feel like my world view will not sustain itself and I may, and again I donít know if I can physically do this, implode.'
NJ... give me a break. I do have a life, you know. Work, sleep, eat, those basic things. I can't spend my entire day on this computer... unlike some of those well heeled sheep shepherding body-art painters or stiletto wearing voluptuous and entrancing Queens.
Well, I'll have you know, my female body painting business is doing just fine. I started practicing on the sheep. I wanted to practice on the wife ,but she just growled at me.
I don't know if that is a good sign ,or not.
The sheep look great. I even put little stiletto's on their feet.
The wolves will be out tonite!!!
Not bad work with my 2"and 3" sash brush's, and my 4" house brush.
When I move up to the hot babes, I'll be finger painting like I did in Kindergarten. : )
Re getting rid of mark to market, then how do you value the assets? Has there yet been invented a way of valuing assets that is superior to the free market? Perhaps we can have some technocrat central planner price the assets, or maybe we can get a quant to come up with a sophisticated formula no one really understands - we know how well those things always work out. There is a reason no one wants to buy those toxic assets! If it was true that they were being unfairly valued far below their intrinsic value, there would be plenty of hedge funds and well capitalized smaller banks scooping them at fire sale prices.
From my perspective it was the pretty girl's freaky husband and some crafty lawyers that lead to the presidency.
How do you price an asset when there is no market? How much is your house worth if no one is buying? If you have it rented out and generating cash flow we can figure it's value, in terms of real cash flow, kind of like this cmo MTM nonsense.
Finance 101 - You take the present value of the cash flows...
Constantly restating the value of assets a company has no intention of selling is insane. They lose all control over their Balance Sheets. Now financial institutions can collapse simply because nobody feels like buying mortgage paper.
Of course it won't get fixed because the Democrats seem to enjoy throwing around my money.
Better yet, it was the LA Times that carried the water. They went to court and fought tooth and nail to get sealed documents opened that led to Jack Ryan dropping his candidacy. Why was the LA Times so interested in an Illinois election? Then a few years later they fought just as tirelessly to not reveal details about Obama's appearance and speech at a banquet for a radical Muslim leader.
Concerning valuation, I mostly agree with NJSoldier, and some are pushing the idea of "economic value" as the replacement. Example: I hold a bond secured by 100 home mortgages. 10 are in default, 5 are 90 days delinquent, and 8 are with weak credits. The remaining 77 are current.
Right now, nobody is buying home mortgage bonds, so the genius CPAs who created this system say that the market value of my bond is zero, and the politicians call it a "toxic asset". Yet I can expect still to receive 77 cents on the dollar or maybe more. Does a valuation of zero reflect economic reality?
Prior to 2007, I would carry the bond on my books at face value less known loss reserves (the 10% and maybe the 5% of over-90-day loans), or 85 cents. Economic value, as NJSoldier says, would mean the amount that someone would pay to obtain the known cash flows, which would be in the area of 77 cents, less a present value discount.
IF THOSE 77 CENTS WERE RESTORED TO BANK BALANCE SHEETS, THERE WOULD NO LONGER BE A CREDIT CRISIS! (Sorry for shouting - we just get a little excited on this utterly unnecessary crisis).