http://www.lewrockwell.com/north/north695.html Rule #157, if implemented, would literally close the doors on financial institutions across America, the Accounting Rules board is looking into modifying that rule change, even if they do it will not change the fact that a vast array of Financially troubled companies are surviving on smoke and mirrors and not sound balance sheets.
One of the last shoes to drop Padre, I wanted to LMAO last week on the positive outlooks from BOfA and CITI.......... Sorry, I have a pretty good idea on the amount of toxic debt sitting on these guys books and the Government needs to let them go into bankruptcy. This will get worse before it gets better and I still stand firm that the big banks WILL be nationalized before the end of 2009.
Well Joeyd, it appears that the Obama/Geithner plan is to pour Fed Money into those banks to raise cash flow and act as if the toxic debt does not exist. So BoA or Citi may have better qtrs from a cash flow perspective, but the bad debt will simply be ignored, sort of like a half baked real estate leveraging scheme, the cash flow will be great, but the debts will be massive. "Oh so your bad debt to producing assets ratio is 30 dollars in bad debt to 1 dollar in cash flow? No problem, we will just ensure that 1 dollar amounts to 20 billion, and your bad debts are 300 billion"
