Borrowed from an October 6 Article about TARP (Troubled Asset...)

"Federal Reserve Chairman Ben S. Bernanke told lawmakers last month that the government would likely pay above current ``fire-sale'' values, while still seeking discounts to shield taxpayers. The sales will force some financial institutions to book losses they've been able to avoid until now."

end quote

Therein lies the rub folks. The "frozen" credit market, the asset managers refusal to accept market value for properties in the real estate market. All products of fear on the part of the financial institutions to take market value.

The emporer has no clothes. Now what?

A Voice of Reason

Here are my thoughts on the presentation done by Dr. Christopher Thornberg at Nick's meeting last night in the Inland Empire.

1- We are in a recession. Witness this morning Ford announced sales down 33%!

2-Chris believes we do not need the bailout bill as the mechanisms are in place already to fix the problem. In fact - he is against it. The Fed Discount window is open - that is all we need.

3-We have 2 choices - take the write downs and losses now in the form of market contraction, or bail out the system by injecting false support (read that as more national debt for us and generations to come)

As the old commericial so aptly put it - you can pay me now, or you can pay me later.

Please - spend a few minutes at Chris' site http://www.beaconecon.com/index.html - it will open your eyes.