"What the Fed, Treasury and SEC seems to fail to understand is that you CANNOT get a return to normalcy after a bubble -- not until prices are allowed to fall to levels that bring in aggressive buyers. That is true for stocks, houses, and even financial institutions."
Monday, September 29, 2008
The Bottom Line
Barry has another great piece today about how the treasury wants to change the rules to further manipulate - I mean stabilize - the market by suspending mark to market accounting. He also makes a simple point that is basically what I've been trying to say about perpetuating Ponzi Schemes:
Asset prices MUST come down. That means some people will lose their homes, and some people will not be able to get new mortgages or car loans. It's a fact - that's how credit works.
Posted by Kid Dynamite at 12:50 PM