From Agora Financial:
"In other words, Citi and Treasury seem eager to replicate – or at least to mimic – the precise Enron-style accounting abuses that FASB’s FIN 46 (R)seeks to prevent. Why, we wonder, is the nation’s Treasury Secretary conspiring with the nation’s largest banks to skirt post-Enron accounting standards? Probably because the credit crisis is much larger and much more serious than any financial or political leader wishes to admit."
From The New York Times:
“’The financial turmoil of the last months is not yet behind us,’ the European commissioner of economic and monetary affairs, Joaquín Almunia, said at a conference of bond dealers in Brussels. ‘Downside risks to the growth outlook have now obviously increased due to the events in the financial markets,’ he added. ‘It is apparent that economic outlook will be somewhat less favorable than we expected.’”
"Over the last two months, some markets have recovered, but problem areas remain, particularly in the London market for structured investment vehicles, or SIVs. There is concern in financial markets about bank exposure to these investment pools and concern that possible forced sales of their assets might shock already jittery credit markets."
From The New York Sun:
"’Don't fight the Fed’ has long been a profitable strategy for stock market speculators. Following this maxim on August 17, 2007, a week after the Federal Reserve injected a massive dose of liquidity to contain the subprime mortgage problem, would have produced a tidy profit. The Dow-Jones Industrial Average has risen by about 5% since then. But those who think this Wall Street aphorism also signals the end of the crisis that began last summer would do well to revisit the history of the Great Crash. The Federal Reserve will provide only a temporary reprieve if mortgage credits are fundamentally unsound.”
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