Article

2009-01-17 Europe

Largest British Banks "Technically Insolvent"

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Posted by badanov 2009-01-17 00:03|| || Front Page|| [5 views ] Top

#1 Technically, such a wonderful word.

Posted by g(r)omgoru 2009-01-17 06:21|| 2009-01-17 06:21|| Front Page Top

#2 Bubbles, bubbles, bubbles, they are such marvelous things - until they pop.

Posted by Richard of Oregon 2009-01-17 08:38|| 2009-01-17 08:38|| Front Page Top

#3 Mark to Market accounting uses the real current market value of financial instruments, not what you bought them for or what they MAY be worth in a year.

So they ARE insolvent, not just technically. I'll never understand the ability of the business world to lie so much and convince so many people while doing it.

Posted by bigjim-ky 2009-01-17 09:19|| 2009-01-17 09:19|| Front Page Top

#4 What is the solvency status of the largest US banks?

Posted by Anguper Hupomosing9418 2009-01-17 10:24|| 2009-01-17 10:24|| Front Page Top

#5 Probably just a hedge fund bear attack. Simple solution set bear traps. If they are not in fact "insolvent" the bears will get burnt, if they are, chalk up another victory for the bears. So big question is, who can stare down who?

Posted by tipper 2009-01-17 11:41|| 2009-01-17 11:41|| Front Page Top

#6 Technically, Britain, as we grew to think of it is also bankrupt. Gone. Overrun by Islamo scum. Time for the civilized world to write off the entire EU I guess.

Posted by Woozle Elmeter 2700 2009-01-17 12:59|| 2009-01-17 12:59|| Front Page Top

#7 Couldn't disagree more, bigjim. If the investment is long term and the payments are current, there is no reason to mark to market. The investor has no reason to believe they will not be paid off.

Current value may be disclosable in a footnote, but historic value is the best most consistent and representative measure. Mark to market is a scam.

Should fixed assets also be mark to market based on current resale potential in the used equipment market? Most capital equipment would probably depreciate 50% on day 1. Wonder if that would be deductible.

Posted by Nimble Spemble 2009-01-17 14:22|| 2009-01-17 14:22|| Front Page Top

#8 I see what you are saying.
I guess it depends on the type of investment type.

Posted by bigjim-ky 2009-01-17 16:49|| 2009-01-17 16:49|| Front Page Top

#9 How's it feel to own a Bank, my fellow US citizens? Bank of America was Nationalized (for all practical purposes).

Posted by Deacon Blues">Deacon Blues 2009-01-17 18:40|| 2009-01-17 18:40|| Front Page Top

#10 Gotta like the name Deacon

Posted by .5MT 2009-01-17 19:26|| www.cybernations.net]">[www.cybernations.net] 2009-01-17 19:26|| Front Page Top

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