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Where Have All the Value Investments Gone?

The economists, accountants, strategists, and regulators need to step outsied of the box and think!

The destruction of wealth and value was caused by the FASB 157 (Fair Value accounting rule, naked short selling, repeal of the uptick rule, uncontrolled derivatives (CDS, leveraged ETFs). Sub-prime loan was the catalyst, but the above-mentioned sustaning factors have caused serious problems around the world.

Fast Money Recap - Has Ben Gone Nuts? (12/17/08)

Fast Money traders are good at making money selling short. Certainly, they don't like the measures that will be successful to turn the economy around.

When Ben is trying to say, "Investors, take risks, you'll be paid nothing if you hide in money market funds." In addition, low interest rates will spur housing activities to help counteract the tightening lending requirements.
It will help banks to replenish capital quickly, and eventually will help banks to relax their lending standards.

Ben still needs the securitization of car, credit card, student loans and private-label mortgages.

The SEC also needs to take away the tools that short sellers can kill any stock at will by re-instating the uptick rule, banning naked short-sales completely (no two-day grace period.)

The FASB accounts also need to modify the FAS 157 and other accounting rules to help the preparers to manage their assets effectively and at the same time requiring them to disclose more exit prices about their assets without endangering their own companies. The financial institutions then would be more aggressive in making loans.