Maiden Lane Spins Crap Assets Into Tungsten
Instead of addressing the issue of misleading the American taxpayer into owning this crap in the first place, I'm sure we will hear lots of GREAT NEWS surrounding this announcement from the NY Fed that the crap they bought on our dime is making a little bit of money.
Toxic assets the government bought during the bailouts of American International Group Inc. and Bear Stearns are finally gaining value, the Federal Reserve Bank of New York said Thursday..
The assets are now worth $69.1 billion - about $2 billion more than they were during the previous quarter
Who exactly defines "worth" in this case? The NY Fed?
The two companies are worth $16.2 billion, up from $15.6 billion; and $23.5 billion, up from $23.0 billion. The New York Fed said it made the revision to the companies' estimated value during a quarterly update performed at the end of last month.
Is that fair value? Mark-to-Disneyland? Lower of cost or market? What if there is no longer a market for crap guarantees and shitty mortgage deals gone bad? Can we please get an independent third party to inspect these numbers? I volunteer Skeptical CPA for the job, I'm sure he'd love nothing more than to shoot down each and every fantasy that the NY Fed calls a valuation.
While the NY Fed is busy patting itself on the back, I'm scratching my head wanting to get some more delicious accounting details before I'm willing to call this a win. Bitches.