Littleinvestor
Mark to market means they have to show the value of the assets today and if they are virtually zero then they now become insolvent. If you don't mark the assets down and just liquidate them as you can and as the market improves then you are able to move your products at a higher price. You are also considered solvent since you are not showing billions in losses, as no one really knows how big or small these losses really are, just let them carry them on the books as assets not as liabilities.
The facts of the $25,000 is if they do this they turn money over if they don't they spend more than the $25,000 on trying to subsidize the unemployed and government housing.
Housing is and always has been what makes the economy grow. It is the heart. If the heart is not beating then you die, and right now the heart is not beating.
Their is zero reason to bail any bank, either let the smaller ones go under or get aquired, and let the larger ones have 10 years to become solvent and let them continue to do business, but eleminate the risky assets and schemes and trading in futures. Make them loan money and make a good return on the loans. No bank should be going down the tubes because a trader made a bad decsision. Let the hedge funds and individuals do the speculating, and let the banks do the banking.
Mickey
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