(OT) Best explanation of the financial crisis that I have seen yet
(my apologies for reposting this from another thread, but I think this subject is extremely important)
www.frontlinethoughts. com/pdf/mwo092608.pdf (FYI, when you cut and paste this url you must also get rid of the 'space' between 'thoughts.' and 'com')(I hope this works)
This is the best explanation of the current financial crisis that I have seen yet. No matter what your political persuasion is I think this is a great read. If you think so too, please forward it on to friends and family.
It's not just about Wall Street, it's also about Main Steet (you and me) too. IMHO, we do unfortunately need government intervention, even though I generally do not like such things. It just needs to be structured in such a way that protects tax payers as well as it can, and it needs to not give the bad actors a free pass. And when I say 'bad actors', I mean the people on Wall St as well as the people on Main St who overleveraged themselves.
Likewise, IMHO, we need APPROPRIATE regulations, not necessarily huge QUANTITIES, in the future to hopefully prevent this from happening again. I am far from being well-versed in finance, but it seems to me that if any firm has the capacity to seriously deteriorate our financial system if it were to blow up then appropriate curbs on the ability to leverage itself need to be made into law and be strictly enforced. Likewise, it seems to me that the accounting rule, FASB 157, in which all assets of these financial firms need to be marked-to-market must be readdressed.