It’s a compromise. The pubs to their credit put the dems over a barrel and forced them to do some sweet tax cuts before letting this sham pass. Yeah I said it. Sham. Government is taking bad investments off the books of lenders. And suspending mark to market which also is a smoke and mirrors move. But I like it. You gotta try. It’s all fiat money nowadays anyway.
And when I say fiat money I mean it. This is like taking some Goodwill off the book. Goodwill is equity built upon reputation. It’s the premium you pay to get a piece of the action. The rest of world doesn’t like our cash? Let em use theirs. When the entire world goes down, we’ll be the last man standing. China doesn’t and has never used mark to market. This is poker. Let them call our bluff. They won’t. For the time being, macro-economically speaking, we win even. Why? We had the goodwill to spend.