As Morgan Stanley and Genworth and State Street and WaMu and others are feeling the squeeze, I feel the need to dispel some myths that are crippling Wall St and arguably the world. It's all a bunch of B.S...
...as in, Balance Sheet.
Now before you go crazy -- I know, I know, it's all VERY, awfully real.
But I continue to think that the accounting-based mandates (that brought on the writedowns that brought on the losses that brought down the capital that brought on the downgrades that brought on the shorts that have brought us to the brink) need to be rethought and relaxed for at least six months, or until an orderly market is restored.
To think that Merrill or Morgan's toxicity disappears simply because it's tucked into a bigger balance sheet (B.S.) is... well... you-know-what!
The Panic of '08
- Video: The Death of Capitalism
If anything, it screams to the ultimate reality that this current crisis we are in is temporary and manageable -- as long as you've got some time and money.
So by blindly forcing viable companies to act -- and account -- precipitously, we have destroyed untold billions in wealth... only because we couldn't wait for unpriced mortgage-linked assets to get a bid.