Comments on: Bankers Cry Uncle http://emac.blogs.foxbusiness.com/2008/05/22/bankers-cry-uncle/ Fri, 20 Nov 2009 19:57:36 -0500 http://wordpress.org/?v=2.8.5.2 hourly 1 By: Phillip Blanchard http://emac.blogs.foxbusiness.com/2008/05/22/bankers-cry-uncle/comment-page-1/#comment-1446 Phillip Blanchard Thu, 22 May 2008 20:16:47 +0000 http://emac.blogs.foxbusiness.com/2008/05/22/bankers-cry-uncle/#comment-1446 One must wonder whether these financial institutions will still protest the burden of accounting rules when the inevitable reversals effectively 'undo' the excessive writedown reserves that are now being recorded? Acounting debits and credits must always be in balance. Today's excessive write-offs will become tomorrow's unearned profits. One must wonder whether these financial institutions will still protest the burden of accounting rules when the inevitable reversals effectively ‘undo’ the excessive writedown reserves that are now being recorded? Acounting debits and credits must always be in balance. Today’s excessive write-offs will become tomorrow’s unearned profits.

]]> By: Mike Rausch http://emac.blogs.foxbusiness.com/2008/05/22/bankers-cry-uncle/comment-page-1/#comment-1445 Mike Rausch Thu, 22 May 2008 19:48:13 +0000 http://emac.blogs.foxbusiness.com/2008/05/22/bankers-cry-uncle/#comment-1445 If the bond rating companies had rated these mortgage backed securities correctly, their never would have been a subprime loan fiasco. The mortgage backed securities bundled up with nothing but subprime loans would have been rated junk, nobody would have bought them in a mass hysteria, thus no money to loan, problem solved after the fact. My best guess is bond rating companies will become the next Arthur Anderson, except their handcuffs won't be as shiny. If the bond rating companies had rated these mortgage backed securities correctly, their never would have been a subprime loan fiasco. The mortgage backed securities bundled up with nothing but subprime loans would have been rated junk, nobody would have bought them in a mass hysteria, thus no money to loan, problem solved after the fact. My best guess is bond rating companies will become the next Arthur Anderson, except their handcuffs won’t be as shiny.

]]> By: Melinda Brown http://emac.blogs.foxbusiness.com/2008/05/22/bankers-cry-uncle/comment-page-1/#comment-1442 Melinda Brown Thu, 22 May 2008 16:44:10 +0000 http://emac.blogs.foxbusiness.com/2008/05/22/bankers-cry-uncle/#comment-1442 Dear Elizabeth: As a novice investor (who must abide by the "rules of risk" i.e. some investments are bad to begin with) I wonder about the nerve of these bankers wanting to change the rules of how assets should be valued. What happened to buy low, sell high and investing in sound assets. All of these paper-stock derived schemes that banks have gotten themselves into is their own fault. Much like the average sub-prime borrower, the banks want rule changes and bail-outs. Well, like Cody Willard believes, let them fall like a house of card. Stupid is as stupid does. Banks too must live by a pesky little thing called rules. Dear Elizabeth:

As a novice investor (who must abide by the “rules of risk” i.e. some investments are bad to begin with) I wonder about the nerve of these bankers wanting to change the rules of how assets should be valued. What happened to buy low, sell high and investing in sound assets. All of these paper-stock derived schemes that banks have gotten themselves into is their own fault. Much like the average sub-prime borrower, the banks want rule changes and bail-outs. Well, like Cody Willard believes, let them fall like a house of card. Stupid is as stupid does. Banks too must live by a pesky little thing called rules.

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