All very true. I’ve read that if ‘Mark-To-Market’ were to be reinstated, many many banks would be instantly insolvent. The same with foreclosures. Many banks are just sitting on their defaulted mortgages, often letting the people live in the property for free for a year or more before foreclosing. If the banks were forced to assume their losses, they would be insolvent. What’s funny is how, due to ‘accounting rules’, they appear to be profitable on paper.
I once read a hunting story (just a forum entry) from an Indian living in Alaska. He said he was tree hunting (using a shotgun) and shot a deer directly below him. The deer ran for 150 yards before it fell over. The hunter said in his post, “As soon as I shot him, he was dead but he didn't know it.”
I can't help but see that hunting story as a very good, powerful analogy to our economic situation.