MISH’S
Global Economic
Karl Denninger wrote a scathing attack of Paulson’s maneuver in Now We Know - There WAS A Threat. My thoughts on the so-called “confidence building measures” of this scheme follow.
* How can anyone have confidence in the markets when the Fed, the SEC, or the Treasury Department has to intervene on a weekly basis?
* How can anyone have any confidence in earnings statements when level 3, market to fantasy assets rise every quarter?
* How can anyone have confidence in banks when Citigroup Holds $1.1 Trillion in Mysterious Off Balance Sheet Assets?
* How can anyone have any confidence when the FASB Postpones Off-Balance-Sheet Rules for a Year, at Citigroup’s request, because “It’s not practical” to implement the rules now. (Please see Not Practical To Tell The Truth for more on this story).
* How can anyone gave confidence in financial institutions when Deleveraging Risk Is High And Growing At Lehman and other broker dealers?
* How can anyone have any confidence in banks when there are 25 Rock Solid Reasons To Believe The Banking System Is Unsound.
* How can taxpayers have any confidence when Congress acts in the best interest of Fannie Mae executives, investors like Bill Gross who bet on a taxpayer funded bailout, and China, rather than the best interests of taxpayers and innocent citizens that had nothing to do with this housing mess?
* How can anyone have confidence in the system if there is even the remotest possibility that the US financial system was held hostage by China? More
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