Keep putting information given to me together to get a clear picture

A former boss is declaring personal bankruptcy, his house, appraised three years ago at $900k is now appraised at $433k. The bank is “working” with him to keep him in his house. The NY Times writer we all read about 3 weeks ago is still in his house 9 months after stopping paying the mortgage because the bank cannot get to him to foreclose - 500 people per desk ahead of him.

So, what conclusion do I draw? The banks are in horrible shape, and will do anything to keep “assets” on the books at full value. The M2M rules being gone, now they can state whatever they wish. If they foreclose, the value becomes what it is.

So, it now is a case of managing cash flow rather than stating your true financial position.

That simple.

Related Posts:

• TOXIC ASSETS and the PPIP Death Rattle—(from Denninger)
• A former boss is declaring personal bankruptcy, then the business.
• Hey Bernanke 1 + 1 will always eventually equal 2. Quit dreaming and go back to kindergarten.
• A Depression Never Ends (1929-2009)
• Pay for banks and broker-dealers will hit a record $140 Billion this year.

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