Jonponwon

New Mark-to-Market Rules: Playing Pretend

It is difficult to know why the only rational option is not being followed. The derivatives out there may exceed $500tr, which is many times the total value of world assets. They are not financial assets or documents, they are gambling debts, and they should be treated as gambling debts are in the western world - unenforceable. By legislation they should be made unenforceable by any American Court, and foreign judgements arising out of such debts should be barred. Only when these toxic assets are out of the way can any fiscal action be meaningful. What is the point of a quantitative easing of $1tr if the debt out there is actually $500tr. NOTHING but this logical solution can end the crisis