thannagan

Why Congress Is Asking Bernanke Bogus Questions

The only thing keeping BAC and their poor shareholders afloat was the government funding and guarantees. Otherwise they were gone, with or without Merrill. Lewis had slready broken BAC and given up his soul to the government. The government herded Merrill into a safe harbor, housing it in their ward, BAC. Lewis had nothing to say and no leg to stand on in the situation, which he created for himself by his prior decisions and governance.

Of course, Congress and White House are always, and only and all, about politics. It was pretty clear in Bernake's expressions what he would have liked to have responded to the idiots questioning him.

Government Risk Rises: Credit Markets Face Structural Collapse

R - sorry - try this url:

www.decisionanalyticsb...

Tom

Government Risk Rises: Credit Markets Face Structural Collapse

Rakesh - Thanks for the insights. I like your contantly referring to the risk-adjusted rates as the best reflection of likely (real world) returns on various instruments - and therefore their relative actual value. I think the systemic implications (cascading market imbalances) are largely related to the lack of sufficient risk-based pricing, and net asset values.

I discuss some of these issues realted to bank lending in my blog: decisionanalyticsblog....

Please continue to publish.

Securities and Exchange Commission and Mark to Market Changes

Graupma, because of 157 and SOX, the baby has been (and continues to be) thrown out with the bath water. 157 is okay if there's a market. Sans a market, you must divide by zero, which doesn't work well at all. I thought TARP was supposed to help create a market for some of these frozen instruments, but apparently that got sidelined.