re: "Mark To Make Believe"

quote:

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It's a fantasy by absolutists that banks can't operate with low or negative capital. Of course they can. Banks have been operating in that condition for decades, even in 'developed' countries (Japan).

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This is absolutely true. You can run any organization on negative capital as long as no one demands payment, and that is especially true for banks considering their standard investment/profit making strategy. The issue isn't whether this is possible, it is whether it is desirable. I think the situation with which you referenced (Japan) is a clear example of why it is not.

ETA: In other news, I bailed on my UBS put way early for a small loss, and now its about to break the lows.