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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (32209)	9/29/2008 6:08:03 PM
From: BWAC	Respond to of 78667

<<I am not interested in paying my taxes to subsidize their salaries..........PS - My business can still get credit. (Yes it is more expensive, but it is available)>>> Seems like its a loss either way? Taxes or credit expense. Choose which foot to shoot yourself in..........

To: valueminded who wrote (32209)	9/29/2008 6:19:52 PM
From: Jurgis Bekepuris	6 Recommendations Read Replies (1) \| Respond to of 78667

You are wrong. You don't understand what the bill was trying to do. You cannot mark to market in the middle of a panic when everyone is forced to sell. Would you want to sell your business now? How about your house? How about if EVERY ONE of your neighbors and local businesses had to mark their houses and business to non-existing market? Would you get any kind of credit if you were forced to mark your business to panic market? Would you get a mortgage if you needed to mark your house to panic market? No way. You are talking about some punishment, but that's not what's going on. No bank can survive if there is no market for the stuff they hold. It does not matter whether they made good or bad decisions. It's a snow crash, it's a wholesale panic. Every time an asset drops in price, everyone has to mark it down. Then the assets are even cheaper and you don't have enough capital to cover the liabilities and you have to sell again. Vicious cycle. Government is the only party which has enough money to provide the market. No, free markets don't work in panics. If they did, bank runs would not happen. Look, Buffett would buy these assets if he could, they are so cheap, but even he does not have enough money. I would too, but it would make no difference if I bought. It's ridiculous to focus on revenge and retribution when house is on fire. Sure, go ahead, kick "the clowns" instead of trying to get the fire extinguished. Good luck with your business. We'll see for how long you will get credit if the trust is not restored. Perhaps the market will find a way out without government intervention. I believe it will be much harder and much more painful for all.