"The government calmly goes on printing these scraps of paper, because, if it stopped, that would be the end of the government. Because once the printing presses stopped - and that is the prerequisite for the stabilization of the currency - the swindle would at once be brought to light. Believe me, our misery will increase. The scoundrel will get by. The reason: because the State itself has become the biggest swindler and crook. A robbers' state! If the horrified people notice that they can starve on billions, they must arrive at this conclusion: we will no longer submit to a State which is built on the swindling idea of the majority. We want a dictatorship." Adolph Hitler, quoted in Shirer's Rise and Fall of the Third Reich
06 April 2009
Quote of the day
Please note, then, for the record: the penalty for unleashing hyperinflation can be horrible; can be tragic:
McArdle on the new Mark to Market FASB rules
So... YOU are a bank. You own some stuff. How much is that stuff worth? What you paid for it? Something else? Or is it worth what you could get if you sold that stuff?
As my sister says, Well.
The third choice passes the smell test, the common sense test, and the intuitive test: something is worth what you can sell it for.
Problem: houses that banks own are often worth a lot less than they were a little bit ago. Therefore, banks have less money. Therefore, they can lend less money. Therefore, the economy slows down and may deflate.
Ach, du lieber!
So, with the encouragement of .... God alone knows who... the financial accounting standards board (FASB) has agreed that banks can value property at what they think they can sell for in the future.
Obviously, this is fraught: "Gee, Joe, maybe some demented kazillionaire will walk down the street and give us the full value for the house. Look, a flying pig!"
Well, as Megan points out, banks are still required to back out the difference in the notes of the prospectus.
As Megan further points out, if you're too damn lazy to read, you're either too damn lazy to invest or your deserve screwing yourself.
And none of this has been covered in the financial press. Which is why you should read Megan!
As my sister says, Well.
The third choice passes the smell test, the common sense test, and the intuitive test: something is worth what you can sell it for.
Problem: houses that banks own are often worth a lot less than they were a little bit ago. Therefore, banks have less money. Therefore, they can lend less money. Therefore, the economy slows down and may deflate.
Ach, du lieber!
So, with the encouragement of .... God alone knows who... the financial accounting standards board (FASB) has agreed that banks can value property at what they think they can sell for in the future.
Obviously, this is fraught: "Gee, Joe, maybe some demented kazillionaire will walk down the street and give us the full value for the house. Look, a flying pig!"
Well, as Megan points out, banks are still required to back out the difference in the notes of the prospectus.
As Megan further points out, if you're too damn lazy to read, you're either too damn lazy to invest or your deserve screwing yourself.
And none of this has been covered in the financial press. Which is why you should read Megan!
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