User 86999

Roubini Attacks Bailout, But Misses Boat on Regulation

While I agree with the MS thesis that Fed itself and all FNM/FRE style entities were a problem to begin with, I will interpret Dr. Roubini's complaint about lack of regulation when applied to cooked books at those institutions. When the top forensic accountants are still struggling to correctly figure out what exactly is where in assets/liabilities, we have a problem. And of course FNM/FRE are just the tip of the iceberg; wait till an army of others start getting exposed with all their Level III assets. When the regulation allows you to hide your deeds with creative financial engineering and rewards the fat cats at the top of the institutions with millions of dollars in compensation and severance packages, you need to bring the regulation in line!