They know how to value their assets. All they have to do is sell a few at auction to private buyers. Each one has a history of payment and defaults and the market will value them if they are given a chance.
But, it won’t happen. As soon as there is a market then all the assets will have a known value and it is to ugly to imagine.
There was a woman on CNBC yesterday who was insisting that there is, and has been, a market for some of these toxic assets all along. There has been some trading.
The price is "in the low single digit range" ahe said. Then she added...I don't mean 30%, I mean 3%.
So we know what their worth - it's just that the bankers don't want to move them at that price and are waiting for the Government to build a floor under them at, say, for sake of argument...30% or maybe 40%.
Meanwhile, hell freezes over the housing market.
Geithner sure was a hit today....wasn't he? CNBC had a poll on how investors should view his presentation:
a) give him a break and some time to come up with details.
b) no break, his plan was about as clear as his tax returns.
I voted "B"!