There is always a market

The complaints about being unable to price the assets of banks because there is no market is untrue. The market is pricing bank assets well below what the banks are willing to accept. It is just like the home owner who is not willing to sell unless they get their price. It is perfectly acceptable for either party to hold assets until they can obtain a price that is more in line with their estimate. I don't think anyone would disagree with such a statement. However, the home owner as well as the bank, must have adequate capital to follow through on such a decision. The home owner has to pay the mortgage and the bank has to meet reserve requirements that are law. The banks did not adequately prepare for this downturn and in turn went to the government for a bailout. When the government funded these bailouts it meant that mark to market was already being suspended. http://www.working-capital.com/faq.php

Why is there such a large divide between The Markets and the Folks?

this was taken from The O'Reilly Factor website and it discusses the divide between the "folks" (evidently that means you and me-us uneducated heathens that can barely chew gum and tie our shoes at the same time) and the sentiment of the stock market. "There is a huge divide between Wall Street and the folks. Since the president has been in office, stocks are down 17% and every day it seems that financial markets are sending a message to Barack Obama: 'We don't trust you.' But a brand new Fox News poll says the folks do not share that view - President Obama's approval rating is holding firm at 63%. So while the financial markets oppose President Obama, most of the folks are still with him. I chalk that up to the president's personal popularity and the desire of many Americans to give him more time to turn the economy around. But today there was more grim news - General Motors indicates it can not save itself despite a $13 billion taxpayer loan. Talking Points says no more money! Meanwhile, far left Senator Harry Reid is trying hard to push through the $410 billion spending bill filled with 9,000 earmarks, and the Obama administration has just announced a $75 billion mortgage program. In less than two months, the Obama administration has pledged to spend $20 trillion, a staggering amount of money. Finally, here's the kicker - when Fox News asked the folks whether it is possible for the USA to go bankrupt, 61% believe it's possible. And it is."

Wells Fargo Smoke and Mirrors

no doubt, more smoke and mirrors bs from the banks.....reserves are still to low and everyday getting lower as home prices fall....equity lines of credit are underwater on devalued real estate, and they already took 25 billion from the government and they still have to play games with the numbers....I don't think we have heard the end of the wachovia deal and the options arms it took over from world savings......oh by the way who are they going to lend to even if they con the government into paying for their toxic assets????mortgage applications down 30%......even if the bad bank is started it will take months before they even figure out pricing and then they will be worth even less.......