180 Degrees - I did some thinking

I like the summary of that article:

Quote:

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But with the market rebounding—as of this writing the Dow was up almost 300 points—and public opposition hardening, signs are emerging that banks are starting to clean house. The crisis may have already peaked. Of course, Congress' ability to further screw this up can't be overstated.

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Everybody needs to read the article just posted, and back away from the edge.

He's foolish as hell if he thinks its peaked.

What he doesn't understand is that selling the MBS at such low prices at this time HURTS the banks credit ratings as well. There's a reason the government buying them at higher prices is necessary. Otherwise you don't stop the cirlce of lower credit > selling off assets for higher liquidity > lowers the credit > etc etc