Wednesday, August 31, 2011

Fix the Banks!

http://usawatchdog.com/fix-the-banks/

 ...billions of dollars of underwater mortgage-backed securities and real estate sitting on the balance sheet is held at imaginary values to make many banks look solvent when, in fact, they are not. 
This is opposite of the way the IRS values assets. The price of something is based on what the asset is worth today. This is called mark to market accounting.

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