"The Federal Reserve is working with banks to help establish 'true valuations' of securities linked to subprime mortgages, chairman Ben S. Bernanke [BSB] said. ... 'It's very much in the interest of the banks to disclose as much as possible as to write down their losses', [BSB] said in a hearing of the congressional Joint Economic Committee today. ... 'We are working with the banks, the ones who sponsor these off-balance-sheet instruments, to make sure they are getting true valuations,' [BSB] said in response to questions at the hearing today. Banks 'are being aggressive in marking down their assets,' he added", Scott Lanman, at http://www.bloomberg.com/, 9 November.
This post's title is from 26 October's http://www.wcvarones.blogspot.com/, so look for Bernanke's Crime Spree Continues there. In 1979 I read this joke in Barron's, "How do you know when the chairman of the Fed is lying? Every time he moves his lips". For a guy who got 1590 on the SATs and is a Harvard man, BSB should be able to do better than this. BSB wants to help banks establish "true valuations"? What does that mean? How does be define a "false" valuation? Are BSB's "true valuations" the 21st Century equivalent of the Medieval "just price" or "fair wage"? Will BSB next try to lead into gold? Stay tuned.
This post's title is from 26 October's http://www.wcvarones.blogspot.com/, so look for Bernanke's Crime Spree Continues there. In 1979 I read this joke in Barron's, "How do you know when the chairman of the Fed is lying? Every time he moves his lips". For a guy who got 1590 on the SATs and is a Harvard man, BSB should be able to do better than this. BSB wants to help banks establish "true valuations"? What does that mean? How does be define a "false" valuation? Are BSB's "true valuations" the 21st Century equivalent of the Medieval "just price" or "fair wage"? Will BSB next try to lead into gold? Stay tuned.
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