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MichaelZZ: The reason the EC is impaired is a "mark to market" rule imposed when there is no real market. This results in "mark to zero" and a reduction of EC far below it's real value. The solution is for Congress to mandate a market value somewhere between "fire sale" and "hold to maturity". This would raise the current ECs of the financial institutions holding these assets and allow them to return to lending.
Sep 29 15:11 pm
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All Comments by henarl »Paulson: Dracula or Uncle Sam? [View article]