re: what?

Current Events » in reply to There's no one cause for this sub-prime mess.

re: what?

Yeti — 3/18/2008 3:07:38 AM (archived)

"Changes in accounting standards since Enron are probably one of the biggest causes. Look up FASB 156 and FASB 157 which have forced a reckoning on tough to value securities..."

So the banks cold continue making crappy bets on long risk... and as long as nobody noticed they would never have gotten in trouble?

Thats crazy. Economics may not be the laws of motion- but its a hell of a lot more real than perception.

The whole thread (20 posts)

Too much deregulation? Maybe. - TB - 3/16/2008 2:44:06 PM
- The lack of regulation is part of the cause of the current crisis. - Bowser - 3/16/2008 11:15:10 PM
  - If I owned Bear Stearns stock at last Friday's close - TAFKASE - 3/17/2008 1:41:13 PM
    - Just saw the figures: market Cap on Friday was 3.5 Billion - TAFKASE - 3/18/2008 1:31:38 AM
  - re: The lack of regulation - TB - 3/16/2008 11:22:24 PM
    - There's no one cause for this sub-prime mess. - TAFKASE - 3/17/2008 1:49:23 PM
      - re: what? - Yeti - 3/18/2008 3:07:38 AM
        
        Who says the bets were crappy? - TAFKASE - 3/18/2008 3:08:57 PM
        
        The debt swap market, wherein ultimately the instruments are valued. - Yeti - 3/19/2008 2:43:43 AM
        
        for some securities there is no market-place so you can't clearly establish a "market value. - TAFAKSE - 3/19/2008 3:37:08 PM
    - Geez, another interest rate cut. - TB - 3/16/2008 11:24:11 PM
      - Its not over... Bernake looks like he is more confused the George Bush at a Mensa meeting. - TAFKASE - 3/18/2008 1:29:25 AM
        
        pushing a string - Yeti - 3/18/2008 3:05:03 AM
      - In this case it's a helicopter, not an airship. (n/t) - podrock - 3/17/2008 3:54:22 AM
      - Wghat happens when interest rates drop to the point... - Lee - 3/17/2008 1:13:32 AM
        
        The Fed Rate is the rate at which they borrow money. - TAFKASE - 3/18/2008 9:11:32 PM
- Actually, that pretty much sums up my point of view. - ER - 3/16/2008 5:58:48 PM
- The US is socialist for the favored corporations. - Bowser - 3/16/2008 5:47:31 PM
  - "money to funnel to the wealthy" - TB - 3/16/2008 7:03:24 PM
    - You didn't even follow the directions, did you? Why, oh why, should I bother??!! (n/t) - Bowser - 3/16/2008 8:12:27 PM

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