BxCap

Accounting Antics Lift I-Bank Earnings - Barron's

"Assuming the issuers don't default" -- You really have to read about the sheer volume of foreclosures, notice of defaults, and "squatting" that is going on in this country, as people with loans they cannot even make payments on (regardless of the declining LIBOR), have stopped, knowing that they cannot sell the property, but comfortable knowing that their mortgage holder cannot afford more foreclosure expenses. We are not yet at a housing "bottom" and yet one mind entertain the idea that the future holds "par" value for these leveraged debt instruments? People like Meredith Whitney, Bill Ackman, Whitney Tilson, and now Brad Hintz have shown you that the financial shenanigans detailed by forensic accountants (i.e. Dr. Howard Schilit) in their books, are alive and well! Quarterlies are not audited, as the first commenter pointed out. We won't make it to year end though, before we find out the reality of what happens when loan non-payments start to domino.