Clearfund: Thanks for the thoughtful and cogent response. I don’t see anything in there that I would disagree with. As far as “conservative” and “conservatism”, there is a huge gulf between between how an accountant perceives those terms and a financier. As an accountant, the principle of conservatism is actually a guiding principle and one that I would hew to closely. Given your background on Wall Street, I would imagine you have seen it all as far as deals go, and have probably also seen the lingo and terminology canted, slanted and twisted to seal the deal.

While I understand your point regarding timing in the SF market, I would also opine that the days of Heller and Thelen-type implosions are far from over. I’d also say that quite a few investors get caught on the downslope (“knife catching”) as the upswing when it comes to pricing and values.

Of course, I’d also be willing to admit that I’m extremely cautious as an investor, hence my love of corporate bonds, and coming from the insurance and surety business, I’ve seen my share of bullshit deals, too. I was actually working as a CFO in Orange County during 1994 when Citron blew up Orange County with his derivative dealings and had entertained a sales presentation from an investment bank which shall remain nameless about the benefits of investing in derivatives. I didn’t, thank God, and largely because I had no idea what the guy was talking about, but still. Cautionary tales abound.