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Excellent points. Meanwhile, half of the banks in the country are insolvent. If asset values were marked to market, there would be a massive runs on banks or another giant bailout would be needed.
The extent to which banks are carrying phony asset values can be seen when the FDIC closes problem banks. The failed bank assets must be written down by 30 or 40% before the FDIC can find another bank to acquire the failed bank. And in addition, the FDIC has to give the acquiring banks a guarantee against losses on the asset pool acquired via loss-share agreements.

How long will the rating agencies maintain the charade of giving the U.S. a triple A debt rating?

Bread and Circuses

I had to laugh--McHenry's comment "When you put this much power into one individual's hands without a check, without a balance, without being subject to congressional appropriation on an annual basis or even every two or three years... those things cause problems". Uh, hello! Doesn't that exactly describe Bernanke and the Federal Reserve? And yeah, it's caused problems... understatement of the millennium.

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