To date, the banks have stuck their heads in the sand and demanded that they be paid the price of good apples for bad apples.”Lynn E. Turner, a former SEC chief accountant.
Vikas Bajaj and Stephen Labaton provide us with an example of the different values for a toxic assets in the NY Times: Risks Are Vast in Revaluing Tainted Assets.
The wild variations on the value of many bad bank assets can be seen by looking at one mortgage-backed bond recently analyzed by a division of Standard & Poor’s, the credit rating agency.
Peacenik and everyone else have been talking a lot about "toxic assets". These are the things that are wiping out the globe's finances. This New York Times article is a good primer about what a toxic asset really is. Now Peacenik understands. Do you own any toxic assets? Do you have a bank account? Do you belong to a pension plan? Do you own any mutual funds? Do you breath? Every one is exposed to these toxic assets. When their true value is finally recognized, watch out. But our dear leaders continue to assure Peacenik all will be well. Maybe they know something Peacenik doesn't. Do you believe them?
