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Question re: bailout and toxic assets

 
Darkman

User ID: 458021
United States
09/26/2008 10:59 AM

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Question re: bailout and toxic assets
Does anyone have knowledge or a link to an estimate of the toxic assets out there. Even a Sophisticated Wild Assed Guess based on a percentage of total CDOs?

It occurs to me that the FED is encouraging "cooking the books" of banks and other holders of toxic assets by buying a small proportion of these toxic assets at inflated prices (hold-to-maturity prices, lol)so the holders of the rest of these toxic assets can mark-to-market the value they are holding at the inflated price the FED insists on paying (sorry for the long sentence). Thereby, creating phantom asset values that will have their day of reckoning eventually and the $700 billion we are on the hook for will just disappear.

HOW CAN OUR GOVERNMENT (FED NOT INCLUDED although it is their idea) CONSPIRE TO "COOK THE BOOKS" WITH OUR MONEY?
Darkman  (OP)

User ID: 458021
United States
09/26/2008 11:13 AM

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Re: Question re: bailout and toxic assets
so noone knows the answer or even has a comment on my "cooking the books" theory?

(yes this is a shadow bttt)
Darkman  (OP)

User ID: 458021
United States
09/26/2008 11:23 AM

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Re: Question re: bailout and toxic assets
ok, I'll discuss this with myself. According to this link:

[link to blogs.ft.com]

borrowers should be penalized but the banks should only be punished enough to keep them solvent. There were two sides to the trade. Why make the penalty asymmetric? Creating a price that does this is "cooking the books", imo.

ok, I am now through talking to myself. Carry on.





GLP