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  #11  
Old 03-12-2009, 01:02 PM
pgardn
 
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Quote:
Originally Posted by wiphan
I agree but what if you don't have to sell? Say your the bank that did things the right way, made the right loans and the performance of your asset is great. According to mark to market you need to devalue your asset even though you don't want to sell, don't need to sell it, and the performance of the asset is fine. Ultimately you are forced because you don't have the cash any more to back it due to devaluation and since your competitors had to sell their assets at a discount with little demand then it is devalued further and sold at a bigger discount and the cycle continues......

A mess.

We need to just barter.
I will give you 100 cantaloupes for
5 chickens.
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