They are "strategic" Barbarians defaulting on home loans to the walls of Rome?

These are people who are "strategically" used defaulting on their mortgages barbarians sacked Rome? The fact that more people take notice to a weakening of the rule of law in our society? Justice Litle writes convincingly that the rise of the strategic objectives through our country is on the road to ruin. But I would say that a debtor is not strategic, the lubrication of our descent into hell. There are some players' only child in a global conceptDrama.

The changes in accounting regulations, such as banks and other financial institutions, the value of their report on any speculative real damage done to our economy. Strategic guidelines are just an inevitable consequence of this change. In particular, the first of March 2009, banks were forced to mark their investments on the market. "Marking to market" means that the assets of a company must periodically assigning new values ​​of its assets for accountingPurposes.

An example would be an account of the stock market. Every night and actually at any time during the day, you can look in your account in the stock market and a minute up the idea of ​​the value of stocks held. It 'easy for the stocks that are priced by the market on an ongoing basis, but much more difficult for more complex systems. Marking to market means that the company must try to determine the current market value of its assets in certain intervals. And inFor banks, the values ​​of these assets to determine if the bank had fallen into insolvency or conflict is the reserve requirement.

When mortgage-backed securities (mbses) "troubled" banks and investment firms have been, were forced to large losses of capital losses, which are shown in the fact that years of rampant speculation, the banks had to show in a precarious position left. Instead, a sort of market, the things, deep-six some of the largest existing banks, severalrescues have been introduced.

The most important part of the bail-out was perhaps the least known: the launch of the brand to market requirements. Under the new FASB rules, banks are allowed to "historical" values ​​to allocate their investments. If a dollar paid mbses could mbses as assets in the amount of one dollar, even if they lead to become useless. This also applies to private mortgage itself. Many people call the "mark of fiction." Note thatbalance sheets of banks then lost all contact with reality, and every investor has betrayed the strength of the presumed underlying business.

With a stroke of this pen, it was 'solvent' King of the banks the banking crisis was over, and the 2009 "bull market" has begun. All right. It sounded good, anyway. But the changes actually asked for an early departure from the "transparency" Obama want the government and the adoption of wholesale fraudulent accounting within recoveryThe core of our economy. The "bull market" that followed, and all claims of "economic development", have rested on the illusion permitted by regulatory changes. It was the pink of the largest banks is an illusion. Despite legislative changes, the banks are closed to the historical rates of this year, and many of them hold mbses are appreciated for their accounting purposes as 100% or more above their actual value.

Of crucial importance for thestrategic home mortgage borrowers, however, is the fact that banks keep mortgages on their "historical" rather than a (much smaller) actual value. The exclusion is a historic event that would have forced a revaluation of assets legislation . This means that banks can not be excluded on the loans without disclosing their actual financial situation, and there is the current state of their inability to pay, their hands are tied. Consequently, bankshave adopted a policy of "expansion and pretend." Expand credits and pretend that they were not in default. But attentive and qualified staff must end free, left to their mortgage, but remain in their homes, and, of course, most of them do so, as for others, who see him.

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