User 268158

Paulson/Bernanke: $700 Billion at 'Hold to Maturity' Pricing

Can we all agree that "hold to maturity" pricing is a synonym to "f*** the taxpayer" pricing? This is an asset bubble, there is maturity price. The crisis didn't come about BECAUSE of a liquidity shortage - the liquidity shortage came about because of depreciating assets, which need to continue to fall in order to clean up this whole mess and come back to reality. It is clear now that Paulson and Bernanke just want to keep the good times rollin' on Wall St, instead of letting a needed adjustment occur.

Here is a solution - pass a law that requires all banks to open up their books to federal auditors, and mark ALL mortgages to market, AND dock them even farther down based on current housing trends. Plenty of banks will immediately be insolvent, have the FDIC seize them and make the stockholders and owners take a bath on it. This $700 billion can be used to shore up the FDIC fund so that common citizen's accounts are saved, and nothing more.

If we keep building up this bubble, the next thing to crash is the country, not just the market.