tag:blogger.com,1999:blog-6278115441557880568.post3727647185685390711..comments2024-03-18T16:29:17.369-07:00Comments on Inverted Alchemy: An Integral Economy: Is Balance Sheet “Cleansing” PC for Money Laundering?David Martinhttp://www.blogger.com/profile/01775270821108542258noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6278115441557880568.post-27280916938539851942009-04-02T20:10:00.000-07:002009-04-02T20:10:00.000-07:00Thank you for speaking about the madness in your o...Thank you for speaking about the madness in your own articulate way, David.<BR/><BR/>For those of you who are Americans, and want to reign in our Federal Government before it is too late (if we have indeed not passed that point yet), you are highly encouraged to read Peter E. Hendrickson's book titled, Cracking the Code, the Fascinating Truth About Taxation in America.<BR/><BR/>There is a very powerful sword of truth for the citizen to wield, if he or she has the courage to make their life count for something in this dying Republic. I am hoping there are some among your readers.<BR/><BR/>Happy Thor's Day!Patrick Mooneyhttp://www.unlearning.org/library/hendkson.wmvnoreply@blogger.comtag:blogger.com,1999:blog-6278115441557880568.post-72392003563082281772009-04-01T16:47:00.000-07:002009-04-01T16:47:00.000-07:00Dave,Didn't realize Christmas came early this year...Dave,<BR/><BR/>Didn't realize Christmas came early this year. <BR/><BR/>--<BR/><BR/>US banks stand to benefit from rules change<BR/>By Francesco Guerrera and Joanna Chung in New York, and Jennifer Hughes in London<BR/>Published: April 1 2009 19:20 | Last updated: April 1 2009 19:20<BR/><BR/>Large US banks like Citigroup, Bank of America and Wells Fargo stand to receive a surprise first-quarter earnings boost from Thursday’s expected loosening of controversial accounting rules by the Financial Accounting Standards Board.<BR/><BR/>Wall Street executives and auditors say the accounting watchdog’s likely approval of changes to “mark-to-market” rules could lead to increases of up to 20 per cent in quarterly profits of large commercial banks.<BR/><BR/>Rushed through by FASB after lender and political pressure, the changes have been strongly opposed by investment banks, investors, auditors and analysts.<BR/><BR/>The changes will make it easier for companies, including banks, to value assets using their own internal models rather than market prices. They will also only have to recognise a part of any impairment in their profits.<BR/><BR/>[...]<BR/><BR/>http://www.ft.com/cms/s/0/717bd926-1ee7-11de-a748-00144feabdc0.html?ftcamp=rssMichaelnoreply@blogger.comtag:blogger.com,1999:blog-6278115441557880568.post-67609987759840634452009-03-30T10:06:00.000-07:002009-03-30T10:06:00.000-07:00Dave, your parsing of the difference between "cred...Dave, your parsing of the difference between "credit" and "debt" is important, profound, and totally overlooked. Extremely useful observation!Dan Martinhttps://www.blogger.com/profile/01635080266346679464noreply@blogger.comtag:blogger.com,1999:blog-6278115441557880568.post-45511296628547232452009-03-29T18:43:00.000-07:002009-03-29T18:43:00.000-07:00Michael,What we see now is the ultimate hedge - th...Michael,<BR/><BR/>What we see now is the ultimate hedge - this time it's the Federal Government shorting its own economic constituents. It is time to call it what it is...<BR/><BR/>DaveDavid Martinhttp://www.invertedalchemy.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-6278115441557880568.post-5113477186247399392009-03-29T18:38:00.000-07:002009-03-29T18:38:00.000-07:00“By establishing a heavily discounted “fair market...“By establishing a heavily discounted “fair market” reverse auction price for these assets, reserve liquidity required by banks post sales will actually need to be enlarged.”... <BR/><BR/>Exactly. Which explains why the assets won’t be sold at a discount -- if at all. If sold cheaply it means more public capital going into banks; if sold high, the public gets hosed, but it’s a legal way to inject capital without taking equity stakes. <BR/><BR/>The Mighty Threesome essentially have boxed themselves into thinking politically about this problem and will do everything possible to avert the inevitable.<BR/><BR/>The path they’re about to take creates a faux market for rotting RMBSs, CMBSs, CDOs ... collectively “The Assets”; which with the failure of AIG and weakening in the ratings of FGIC, MBIA et al., have no longer sufficient credit enhancements to support even conservatively modeled NPV regardless of cash flow. They decided the fix here is to make the FDIC “insurer of last resort” to quell credit concerns for new buyers and reflate values. <BR/><BR/>This is all bogus and serves only to skirt the politically damning alternative of nationalizing conglomerated banking, imprisoning the hooligans who forgot they even had mothers, and laying to rest stigmatized “going concerns” that have no longer any value now or in the future anyway. If in fact their balance sheets can not support their garbage in Level 3 with available capital, and they can not raise any more, then this is the only reasonable course of action. <BR/><BR/>Am I wrong here?Michaelnoreply@blogger.comtag:blogger.com,1999:blog-6278115441557880568.post-82962057452605642262009-03-28T15:04:00.000-07:002009-03-28T15:04:00.000-07:00I wish you made less sense.It seems that Congress ...I wish you made less sense.<BR/><BR/>It seems that Congress is either clueless/inept or collaborative/evil in this money laundering scheme. Either way, it appears they will not stop this process. It also seems unlikely that "We the People" will stop blindly "spend[ing our]selves into ever deepening holes". Unless taxpayers literally revolt, it seems we are dependent upon someone outside the USA stopping our madness.<BR/><BR/>Have I oversimplified this?Anonymousnoreply@blogger.com