Paul Meisel

Subprime Root Cause Analysis

Another thing worth considering -- the "mispricing or lack of pricing" would not be a problem if the securities were purchased by people with the intent of holding them to maturity, and accounting was done is the same manner. The folks who got into "lightly traded securities" who were in businesses that require marking to "market" were taking a bigger risk than they allowed for, and they got burned accordingly. Someone is on the favorable side of this trade.