[quote=davelj]
More smoke and mirrors. No one wants to accept the fact that these assets simply aren’t worth what everyone wants to will them to be worth. Putting them in the Entity’s hands won’t change a thing. Anyone who wants to buy this crap will still need to finance it and no one has capital to lend for this sort of crap.
My prediction: More smoke and mirrors to follow once people see through this silly ploy. And so on and so on and so on…[/quote]
Sadly, it will prop up the equity markets i think.
Shift the bad debt into a seperate legal entity. The original banks with this shoddy debt have their books clean.
BAC Ken Lewis is probably laughing his ass off right now. Because he’s going to move everything crappy that came from Countrywide into that instrument…And now do the same thing with Merrill. Suddently, Ken doesn’t look as dumb as people say he is, does he? And by picking up Merrill first, it basically left a trail for all the other C-banks and I-banks to figure out who should merge with who. It’s as if everyone was on the dance floor, and BAC picked the best dancer off the dance floor and now that the music has stopped, everyone else has to settle for second, third, forth fifth. It’s almost as if Ken *knew* this level of bailout would happen.
Morgan thinking about merging with Wachovia??? Talk about scraping from the bottom of the barrel!
And once the banks get there books clean this way, they will play clean for a few years until they come up with an even more clever way to lose money in the future.
Why do banks continuously try to find new and more ingenious ways at losing money, when the old ways worked perfectly well????
