For about 5 years several Congressman and others on the Hill have been talking about the accounting rule that Banks are held to. This is a major source of the problem and has yet to be fixed. Of course, several folks haven’t paid attention for years and if they had a large portion of what we are facing would not be in place. In otherwords several Banks that failed or ran into trouble last Fall would not be in that situation.
And yet, that has yet to be focused on. Steve Forbes did an excellent job on Meet the Press explaining this fact. We have to realize the Banks need to write-down their losses, get them off the books and let the healing begin. Yes, more Banks are going to fail – but here is no longer a choice. Let’s get this fixed and get to the real bottom. Quick shoring up false money.