Banks see themselves as being ‘the financial system’. They will always see their preservation (as a whole) as more important than any one business or generation of businesses. One bank will probably see thousands of investors and business plans a year on average. They are the ‘money multiplier’ in some ways, and it ‘goes to their heads’ obviously. But we should not forget that there is a great deal of truth to their assumptions. Remember, please, that the relaxing of the mark-to-market rules only increased values on the books of a lot of companies with instruments that require it for measurement before recording. It gives banks time to wait out the large right downs and hits. Instruments tied to housing may still be tough to predict the values of, even if higher values are reported based on a model or assumptions of a better market. The foreclosures keep coming but what makes things worse are lower sales, and large inventories. The stabilized values on the books because of the relaxed mark-to-market rules will one day have to meet the low number of mortgages that receive cash. I hope there is something in place to protect banks, and us, from a point in time when the cash flows can not possibly justify the values based on a mark-to-model valuation. I might be wrong on these things and other things, but you may want to make sure that the accounting rule changes don’t force continuous write-downs in the future, even when financial regulation is enacted. These leads back to capital requirements, and why larger amounts of cash and equivalents in proportion to complex investments are needed.
Honestly, I was for the Iraq war in the beginning when I thought it would be managed well. I saw it as more Saddam’s fault for not giving full access of inspectors by Bush’s deadline. I’m not trying to defend the bush admin, but Hussein could have made a choice to avoid military action. Saddam never thought about his people and he played chicken with an overwhelming force. I also assumed that with Powell at State that a real plan for nation building would have existed and a new govt would be waiting when Hussein was removed. Estimates were right; we really did not lose too many soldiers fighting the Iraqi republican guard- many of them surrendered. I think we were basically about to storm the capital without losing one solider. But when it was just estimated I thought about the possible end result, even though I was suspicious about Chenney’s motives (Halliburton connections and all). I thought, what if a basically 100% Muslim, democratic and semi capitalist country could be created in Iraqi? What if, by example, the rest of the middle east that hates the west and America could see Muslim praying 5 times and day, women clothed in traditional garments, all being able to vote and have there day in court if they choose. You add in trade with the west where you can and an improved relationship with Israel; I thought that Iraq could change the whole region if the police action to get Hausain out and the democratic nation building was planned well. I knew it was a mistake when it took a few years, but it wasn’t until Powell did not return before I knew that it may have never been planned like I trusted to be. When a guy like that breaks rank, I think you have to really question the chain of command some what. If this admission and my desire to see more troops, but more importantly some positive results in the war on terror in Afghanistan and Pakistan, both make me a ‘neo-con’ or a ‘hawk’, then so be it. But if I am a hawk, I also know I can be wrong. I hope that more ‘dove’ ideas are considered and checked with military types to see if plausible. I think that in these ‘damned if you do or don’t’ situations, whatever you do is accepted better with the public if the president and military staff can agree or can both support compromises. But it is the president’s call, do what you think is best to keeps us safe, sir.
I like the attacks on fox. The left can’t go anywhere, the right only watches it and much of what is said will begin to scare or bother the center. Also, I’m personally tired of good ideas like end of life counseling, at a time of record numbers of senior citizens, having to be taken off of the table because of political attacks to kill a bill. Even worse, that idea can be credited to a republican. Too much politics, not enough level headed, real world conservative policy making and defending, from what it’s worth coming from me. I don’t see the white house attacking, just defending positions that show the other sides weaknesses. If the drama actually starts to drive policy I don’t think you have a choice. I say keep it in the form or responses to comments or questions. Anyway, please check the banking thing this year and next, it should tell us a lot about the link between the number of mortgages that are actually making payments and MBS values on the books. I might be overdoing it, but I hope that another bubble is not being created to fix the last one that burst. I honestly think the housing credit should be extended, and maybe use stimulus to cover the cost.
Nice family photos Mr President.
