.................................................................. Phony accounting.... Phony ratings.... Phony representations.... Trillions lost.... No prosecutions...."in high up places".... A bit fascist.... ................................................... According to Summers.... The free market just needs a little tweaking.... The public is getting "tweaked".... "Trick or Tweat "?
From a news report: Bank had $750M in deposits $1.8B in "assets" You draw your own conclusions Hint: Assets are unrecoverable loans hypervalued by phony accounting.
Last I heard, U.S. banks are heavily regulated by the Federal Gummit. If you don't like what's going on with the banks, quit your bellyaching. Just follow the money.
Do you know why banks always have a lower PE ratio? Yes, it is phony to start with and it gets more phony during this crisis. The more people don't trust their balance sheet, the lower their PE will be.
Well the answer lies that most americans dont know what a debit or credit are. You would be surprises how banks are making money these days. Basically they are an insolvent industry. They are mostly making money on what they think their assets are worth (they got them for 5 cents a dollar) from failing institutions and revaluations. Just manipulation. But it does not bring any real cash flow.
Is their treatment of these "assets" contrary to GAAP? I have drawn my own conclusion: that it's difficult to fully appreciate the true nature of business from a set of financial statements prepared according to a set of general accounting rules. Phony signifies that they have broken some sort of standard; Have they? Citation please?