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Bernanke & Paulson Need to Create a Mortgage Specialist Fund

Boy, if your idea of a solution is to stop mark to mark accounting then you just don't get it. Hey maybe, I shouldn't mark to mark my PnL and the losses might just go away. The solution is twofold. Limit leverage the investment banks and other financial institutions can take. Do not mix credit with real money.

How High Leverage Has Brought Down the Whole Banking Industry

Intersting. regarding your paragraph on Lehman bros. why would you add the book value and mkt cap together. Doesnt book value incl mkt cap or whatever eqty they have?