tag:blogger.com,1999:blog-6276561747841568697.post427481770314802026..comments2024-03-27T05:23:48.855-04:00Comments on Krugman-in-Wonderland: Yeah, it was Lehman all along!William L. Andersonhttp://www.blogger.com/profile/01802990642236807359noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6276561747841568697.post-73548016055916008072010-09-19T20:00:12.940-04:002010-09-19T20:00:12.940-04:00Save Lehman? Dick Fuld and all the upper managemen...Save Lehman? Dick Fuld and all the upper management along with Paulson should be in jail. What does Obama do? He makes one of the major players, Timmaaaaaay, Sec of the Treasury. Talk about rewarding bad behavior. Maybe I need to take up a life of crime. Maybe if I rob enough little old ladies on the street, someone will make me Chief of Police.<br /><br />I don't know if you've seen this video, but <a href="http://www.c-span.org/Watch/Media/2010/04/20/HP/A/32013/House+Finacial+Services+Cmte+Hearing+on+Lehman+Bros+Report.aspx" rel="nofollow">here it is. Bill Black starting at 1:31:00</a> 1:56:00 he explains that it was not liquidity that was Lehman's problem, rather insolvency. Insolvency that was being hidden by, at best case faulty accounting standards, at worst case, fraudulent accounting standards. <br /><br />Of course all of the banks that were insolvent should have been allowed to fail, and their assets, good and bad, sold at fire sale prices. There are 8100 banks in this country, many of whom did not make bad decisions, and I'm sure, more than a few, would have been interested in those assets at 20 cents on the dollar. <br /><br />That would have also given the banks opportunity pass along those sale prices, and write down part of the principle on the individual mortgages. (not that would have been fair, but it would be better than what we have now).<br /><br />So, many of the assets are still hidden on and off balance sheet, and marked-to-myth, until, of course, they mature, or are sold. This is, by no means, over. Can the Fed buy them up? Can they FHA rewrite the individual loans with Treasury backing? Can banks like JPM borrow enough from the Fed at ZIRP and buy long term Treasuries at 3-4% to cover all of the losses? Can they do it all without hyperinflation? What odds are they giving in Vegas? That's your best bet. At least you know the odds up front. They may be stacked against you, but at least you know what they are, and the House will pay if you win.mike mhttps://www.blogger.com/profile/14825549659528271104noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-25238073439338794262010-09-15T21:17:23.573-04:002010-09-15T21:17:23.573-04:00Could not agree more, particularly with the last s...Could not agree more, particularly with the last sentence.Anonymoushttps://www.blogger.com/profile/09194944405258520101noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-77334921010085364262010-09-15T14:44:06.565-04:002010-09-15T14:44:06.565-04:00Keep doing this stuff! Great comment. Eventually t...Keep doing this stuff! Great comment. Eventually this fraud will be recognized as the political hack that he is.Jeff Hardingnoreply@blogger.com