Quote:
Originally Posted by mcsluggo
the japanese allowed their banks to avoid any real consideration of how much their useless assets had actually withered away, it was a key key factor in their inability to actually come to grips with their asset bubble pop and subsequent banking failure... that limped along for over a decade.
make the banks value conservatively. if they are insolvent, they are insolvent... and will have to be nationalized. Just do it already... if the assets rebound a little, the govt can recoup some of its losses in the workout. THis financial sector mess is going to cost $2trillion to fix. We ought to stop beating around the bush and just get to it... stalling isn't going to make it taste any better.
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and speaking of the Japanese...
http://www.nytimes.com/2009/03/11/bu...s.html?_r=1&hp
"Earlier most Asian stock markets climbed, but Japanese shares sank to a new 26-year closing low amid ongoing worries about the economic crisis. Japan’s Nikkei 225 stock average fell 31.05 points, or 0.4 percent, to 7,054.98 _ the lowest closing level since Oct. 6, 1982 when the index finished at 6,974.35"