HeartThais Posted November 24, 2008 Report Share Posted November 24, 2008 ok, right. been meaning to ask, where do these billions disapear too?...thin air? Pretty much. Every bank in the US has to report their assets in three categories. Level one is liquid and traded. Level two is illiquid but can easily be benchmarked to a liquid market. Level three is illiquid and calculated according to a financial model or best guess based on market behavior. In boom times, those models helped these banks book profits. As worse and worse data comes in, the inputs to these models (like default rates) are causing all those profits to be erased or worse. So yes, it's all disappearing into thin air. Link to comment Share on other sites More sharing options...
Al Posted November 24, 2008 Report Share Posted November 24, 2008 ok' date=' right. been meaning to ask, where do these billions disapear too?...thin air?[/quote'] As worse and worse data comes in, the inputs to these models (like default rates) are causing all those profits to be erased or worse. So yes, it's all disappearing into thin air. predictably, the gop are proposing eliminating the capital gains tax. but that really is a moot point. would a tax on capital gains require that you have capital gains in the first place? Link to comment Share on other sites More sharing options...
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