The allowance for loan losses totaled $24.0 billion at September 30, 2008, a coverage ratio of 3.35% of total loans.
That equity capital base reflects “mark to fantasy” accounting.
The marks during the panic were the “mark to fantasy”
No, those were the prices that the market was willing to bare at the time, and they really haven't gone up much since.
Let's just both bookmark this thread and come back in 6 months.
I used to think a lot like you, but then last September happened and I decide to reevaluate.