Replies to post #6815 on S WAVE CHARTS

[snootmagruder]

JLS, Your post has many debatable comments. The formal education system on economics is even debatable whether their programs work or not. Your quote about the cause of the financial collapse: "The financial crisis we have come out of was caused, in general, by unchecked, or even sometimes encouraged, capitalistic greed."
is dead opposite of my views. My views are at the center of the snowball was forced minority lending which is a socialist policy.

[snootmagruder]

JLS, your last paragraph of S & P profits, the big question is: is there government manipulation here? Particularly the financials and accounting method regulations have been manipulated in the past few years.
The link below is "mark to market accounting" Wikipedia. The IFRS 13 (noted toward bottom) which takes effect Jan1,2013 is difficult to find exact detailed info and difficult to understand fully when you do, (I think by design) should produce at least some differences, if not large, in bank valuations.


http://en.wikipedia.org/wiki/Mark-to-market_accounting

Take note of "IFRS 13" which takes effect as of Jan,1 2013

[snootmagruder]

Jls, the post I'm replying to has some confidence on your part that the QE is worthwhile, working and in another post you commented on how government would make huge profits on the MBS purchases. Just a couple comments on this: Did you know Bernanke co authored a study in 1988 claiming QE didn't work? And that in simplest terms, QE is the overpaying by government for securities in an effort to reinforce banks and financial institutions. I wonder what prices government is paying for the MBS securities now? I'm sure if there is a huge profit to be had, it will come from the publics pocket in some fashion, being their initial losses from foreclosed properties or the governments future loss.

[maitri]

> That profit was approximately 17% higher than the next highest year which was 2007. That is not a bubble.

Interesting. That means 2008 is not too far away?