bark
makes a good point
the tp applications of circuit braking
and a relatively loose credit flow
might not avoid a long dull adjustment
and maybe in
a near net-less high wire
anti solidarity
type economy
like we go here under
the red white and blue
also a very
cruel adjustment

bw and ohers

marking a portfolio of untraded
securities to spot market
is hardly a call back
to long run reality
in times
when markets are most perverse

th notion there exists a "true and real" value
even a relative value of securities
is pure pata-physics
read say ... joe stig
on the circles within circles
the fun house values
morph like magic
and that's endemic to un regged rigged up hi fi markets

what is solid is the rationing of credit
the ration rate
rationing criteria etc

tp is a moss backed union maid
but he's not wrong about
the folly
in wishing
the present wide open and wild markets
might speak their firece...truth
to our still unchastened corporate powers

recall samson
uncle ought not to play samson here

my take away

corporate capitalism has just revealed its systemic ...limitations

its irrationality

our mission as agents of world history

sublate sublate sublate
and with audacity

playing by the rules of markets
is to condemn ourselves to
more cycles of madness and folly
ending in despair and ruination

for us as weebles
like uly's crew in the cave
it means more ravages more roasting spits

for us as weebles
to live under corporate hegemony
is to exist
as a dinner serving

ie
a member of one or another cyclop's
feast herd

------------------
"... nobody knows how to value financial assets."
exactly correct

"...a liquidity problem if the values are high enough
and a solvency problem otherwise"

smart lines that imply ...creative accounting
plus cock eyed "trust"
are broken
by an arbitrary act of final creditors
at least
in a set up like ours today
in amerika

any nasty balance sheet
can be trumped by ...top down inside credit

how about if....
enough arbitrary
administrations of liquidity
always leads to long run solvency

an endless line of credit
immortalizes any mortal outfit
even the most bollocking

uncle lays his hands apon them ...

and
t'is a cure if not of all
at least of high dimension

...
"They can't restart the madness all over again with impunity"

really ??
what's your time frame ???

basic clio units are 50 years

by my hunch
one clio unit oughta exceed
enough time for a wall street hyde rampage atavism to erupt
....and then some

hari i wish i shared your sense of resiliency
"surely bounce back "
in what time frame ??

.2 clio units ??
ie
one siege of troy unit

lots of time
for needless lost time
meyhem and misery

...
rusty
is right

"to cure an economic and regulatory problem with accounting"
is impossible
after all...

how much cash/credit
does the accounting department have anyway ????

even in the best of market times
accurate notional market pricings
are problematic

to assume the arms lengthening approach
thru casting a shadow of the real prices
like plato's cave wall
on a balance sheet
like it's plato's cave wall...
yikes

from the open market cometh noise and toonery
not a just price ideal
and doubly so
whilst
that open market is groping around in panic...

yes using a market based guestimation
might very well yield
a better more socially easible
balance sheet of acounting notions
then say
the pure black ink fictions
of a pack of inside grifters

but accuracy??
a guide to social action
by societies deputies ???

the market has lost its head

so
i think not

a truer value here
if such a notion has validity at all
is imposed
by the course of credit rations
thought necessary to revive the buggar

not mad house reflections of mob crazed transactions

-----
more to the point

its values that drive margin calls etc

the whole biz wi
about reg mandated
buffering up
the cold regulator's command
to add equity bub
your loses are showing
needs a time out for now

trying to add equity
in a time of chaos ???

let these rescued organizations
---thru their assigned
public supervisors---

--once they have a proper
fed credit flow iv
slipped into their cash stream--

move with all deliberate speed

----and even as they continue to turn
the daily credit wheels
of the real economy ---

to calmly count off
their own particular
collection of golden and rotten eggs

--------
bruce
"Oh, please. Spare me. Obviously, Wall St. is chock full of people, who value financial assets "correctly" all day long."

you don't know the relative value
of the dollars in your wallet
to buy a fried egg in shanghai next year

and that's just a humble product
not a synthetic asset
if values flux within system wide shocks and cycles
then spot prices ought not to dictate
solvency questions

i agree
its the private and the social in conflict here

but

the spontaneous systemic response
of an open market
to a Mellonic house cleaning
--even one based on true values and administered
with a batman like swift and informal justice ----
can't prevent
us here in the ass hole innocent job class
from a decade of needless misery

at the moment
are we
prisoners of the system's model of itself
or for once as in every cycle
are we now prisoners
of the actual system itself

a system with an inherent
sluggish clumsy
capacity to adjust itself
after a serious protracted episode
of its own
relative value self mal-formation

...
bruce
the question of what firms must
commence to liquidate
can't be effectively determined under
and even more so
can't be justly executed
not
under present conditions

sure the balance sheet guestimate can get closer
to accurate and fair
then the looters own magic numbers
but social credit here
and no social credit there
at least as it unfolds in crisis times
must have an element
of unconditional gullability

at this point
lets postpone the st petter act
lets catch and crush the plutonic beasts
only after we've restabilized
the real global..global..global
economy

don't be blinded
to your on best interests
by your own righteous indignation

i write here as a reformer not a revolutionary