gksmar

This Rally Smells Fishy to Me

If you cannot market to mark because there is no market, then the value of the asset is zero because there is no market for it.
That is what free markets are my friend.


On Jun 12 01:13 AM sethmcs wrote:

> The premise of your article is the "bad assets" have not been cleaned
> up and banks are still insolvent. I disagree. All derivatives are
> not losers, especially if they are hedged and CBO are not worthless.
> If they are give them all to me. lol. What has happened is the mark
> to market rule made all these instruments appear to be worthless
> because you can't mark to market without a market. What is going
> to happen now is these assets will be wrote up and the interest rate
> spread will allow the banks to start making some serious money.
> I bet most banks will beat earning expectations which are already
> low. If you feel that I am wrong go ahead and short the financials.
> I am accumulating regional banks now and avoiding the majors. If
> I am wrong the juicy yields will allow me to be patient.

Wall Street Breakfast: Must-Know News

Very good overview. Thanks very much.