A Crisis of Faith Paul Krugman, New York Times. On the loss of confidence in fancy finance.
Stuck with a bad loan, a Staten Island family fights back Staten Island Advance. A judge deems a lender in violation of New York laws against predatory lenging, voids a mortgage, and orders damages paid. Expect an appeal.
No Pristine Oceans Left, New Map Shows National Geographic News
China’s CITIC, Bear Stearns plan to increase stake in each other Xinhua
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Re: Mr. Cox said “one means of substituting … would be to substitute the current definition of the rating currently provided by the rating itself.”
What that means is that the SEC is considering ways of setting criteria that gets away from the ratings but focuses instead on the underlying concept. For example, for some rules the SEC could require bonds to be liquid and then develop some measure by which to sort them other than a credit rating, says one person familiar with the matter.
Mr. Cox last week said the SEC may consider proposing rules that would require rating firms to show the accuracy of past ratings and distinguish ratings of corporate and municipal debt with that of structured investments, such as securitized mortgages. Today, he said a rule proposal is not yet floating around and “we’re at least a couple months away.
>>Yives: What about a P/E kinda valuation where we can compare the yield of a bond to a bond, to a stock, to a CDO, to a money market account…… securities should all have a simple yield and then of course, simple balance sheets which are audited by SEC/FBI accountants…… and sorry, but we have to get rid of bogus FASM/GAAP stuff and end the charades which allow tax evasion, so re-write IRS codes…… which can all be done in The Next Greater Depression!