David Roskoph

Debt Securities Bailout: Avoiding the Responsibility of Risk

Didn't we learn about the evils of forgiving the realistic pricing of privately held, thinly traded assets. Now securiities must be marked-to-market and be subject to stiff haircuts if they have no real market. This iliquidity describes the SIV's but they're too stupid to fail. Alt-a's are junk bonds without the risk premium and the Federal Reserve is the Drexel Burnam that is supporting them through the super conduit. The government is supporting the junk (by ignoring the pricing till the heat is off) so that the super conduit can eventually off them to the public.