http://www.nakedcapitalism.com/2008/12/quelle-surprise-banks-increase-mark-to.html Level 3 assets FRAUD continues.... ....................................................................................... The Politicians have to begin realizing that the majority of the over $7 Trillion in domestic savings ....has been largely lost by the major financials....and that all prices of all products will have to adjust downwards accordingly.... One cannot make a loan to GM to produce $30,000 cars....when the new threshold is $15,000..... One cannot make housing bailouts to try to make $240,000 work....when the new threshold is $70,000..... Any bailout will only replace Level 3 assets to some degree whereby the financials have still not come clean.... One cannot value credit card lines at a $7000 number....when the new representative number is no more than $2000...if at all.... All policies based on the old prices .....WILL FAIL..... Policies based on the new threshold prices......can be effective.... To date.....all bailouts have only replaced some of the Level 3 assets..... What is gone....IS GONE..... ....................................................................................... The only savior to the dollar....is the somewhat equal downshifting of the other developed countries.... ...................................................................................... Thus in order to move forward....the new prices must be realized....such that commerce on a per person basis can move to higher future levels..... When prices are too high....one can only expect down..... When prices are low....one can expect higher future prices.... ......................................................................................... What has to happen.... Government has to downsize in a very big way.... ie 10% consumption tax....no other taxes This is common sense.....Unless the consumer has the money.....nothing is going to happen..... Unless obstacles are removed from all businesses....businesses will decline..... Any form of tax increases or impediments to business will just make the economy decline even more.... One cannot tax a diminishing base and expect an increasing outcome.... However just as the Politicians cannot see the $15,000 Detroit problem.....they think that their pay should remain the same....and even go up..... This has to change...... Washington is worse than Detroit.....they do not understand how to replace assets....They just want to take more from less.... They do not get it .... Jimmy Rogers gets it......among others...... By the way if there is a car zar...it should be Lee Iaccoca......you know....someone who actually has made cars .....and Volcker should be advising the Central Bank......you know....someone who was successful in banking previously....
http://www.reuters.com/article/wtMostRead/idUSTRE4BA5CO20081211 Rogers has it right.... US politics has it wrong..... The good banks are penalized for good practices..... US Taxpayers are being penalized by bad banks....... What is wrong with this picture ? This is a 20 year + POLITICAL mistake..... When BAD POLITICS are stronger than GOOD ECONOMICS..... Guess who pays.....