Agency debt DOES have a market value. Mark to market, and move on. Yeah, it's a loss for banks. But let's have real banks, not phony ones.
All that is being proven here is that American interest rates were held too low, too long. That's why home prices bubbled too high.
American savings accounts should have been paying 7% and mortgages should have been 9% this whole decade. Smaller home prices? Smaller houses? Lower energy bills to heat and cool them? Yes, yes and yes. (But YOU had liars in your government instead.)
Kirk Shinkle is a senior editor at U.S. News. He writes daily about ups and downs in equity markets, sectors and stocks. Formerly, he covered business and economics on both coasts for Investor's Business Daily.
of @ Aug 27, 2008 12:00:34 PM
Back to blog