happybob

Mark-to-Market Accounting: Kill It Before It Eats Us Alive

petyaczar wrote:
"This is not a bail out, it is an opportunity for the government to use the strength of its balance sheet to provide liquidity, purchase performing and nonperforming assets for pennies on the dollar, then thru a seller and buyer financed govt insurance fund, Resell those self same assets back to other institutional investors."

The strength of the government's balance sheet?

Would this be the government that is currently $9+ trillion in debt?

The Government that is planning to run a $400+ billion deficit next year -- before any bailout?

The Government that currently has $53 trillion in unfunded liabilities?

The government's "strength" comes from its ability to issue more debt, not from a reserve. This seems like the same backwards thinking that got us in the current mess.