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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: XBrit who wrote (76190)3/14/2008 7:40:21 PM
From: SouthFloridaGuy  Read Replies (3) of 116555
 
The fact that Bear is being bailed out here already signals the intentions of the US Gov't, which is to bail out the counterparties.

This crisis is systemic in nature.

Bear should not exist (and won't) and neither will any b/d which overleveraged itself and couldn't raise equity capital, but there is little reason that the counterparties who have good collateral shouldn't be helped. It may take years and ironically may increase job demand on Wall Street for operations professionals to help clear the trades.

Sometimes it's just not efficient or prudent to mark to market.
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