Not true. The recent changes in how such assets were accounted for "on the Books" is why we are experiencing the problems now. I believe it is now known as 'Mark to Market' Accounting, when we used to use a System that allowed for the "assessed Value" to come into play over several years.
So when some claim this happened because there was not enough "Regulation", they are wrong. It was caused more by BAD changes in Accounting Regulations. On Sep 27, 12:21 pm, "Mark Kahle" <[EMAIL PROTECTED]> wrote: > not at the level they are bailing out. it is all about "bad paper". > banks could care less about what the loan is for. they are concerned > ONLY about the value of the "paper".... does it yield a profit or not. > the rise or fall in the actual assets value decides if the "paper" is > rewritten or not (house sold). > > in this case a lot of the paper is bad because the money was loaned at > risk factors higher than normal.... many banks are facing NO problem > because they did not get slimy. > > On 9/27/08, Gaar <[EMAIL PROTECTED]> wrote: > > > > > On Sep 19, 3:21 pm, THE ANNOINTED ONE <[EMAIL PROTECTED]> wrote: > > > tell me what hard collateral (auction in one month of failure) the > > > banks have for collateral other than the BAD PAPER that put them in > > > this position?? > > > I believe they are called Homes. > > > And much of the problems we are seeing were caused by MORE > > restrictions to how such things were "accounted" for... > > -- > Mark M. Kahle > Blessed are the bewildered for they don't know the difference.... Me --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
