| More than 'sheets' hitting the fan
People want to know why things in the financial markets are so damned weird, and I answer that there are many reasons, all of them concerned with greed. And it may also have something to do with "making hay while the sun shines", as Jim Sinclair of jsmineset.com reminds us that "November 15th is a day when a nuclear accounting bomb will be dropped on establishment financial entities. This accounting requirement demands truth on the value of their structured products, also known as derivatives."
In a nutshell, "Level 3" assets are those financial assets on the
balance sheet that do not have a value based on price discovery in the free market. They only have the value that they originally thought they would have, as calculated by the guys who dreamed them up, and the money paid to the guys who dreamed them up.
Officer Injured After Van Causes Her To Crash Into Tree
ORLANDO, Fla. -- An Orlando police officer was recovering Friday from injuries she suffered when her patrol car crashed into a tree. Investigators said the officer was responding to a call Friday morning when a van pulled out in front of her at Summerlin Avenue and Pine Street. The van hit the patrol car, which caused the officer to ram into the tree head on. The officer was sent to the hospital as a precaution. No one was injured in the van. .
Breaking News: Freddie Mac posts $2 billion loss
WASHINGTON -- Freddie Mac set aside $1.2 billion in the third quarter to account for bad home loans and the company posted a $2 billion loss today amid a worsening mortgage crisis. Losses for the nation's second largest guarantor of home mortgages widened from $715 million last year during the same period. Freddie Mac said it made the provision for credit losses in the July-September period because of defaults on home loans, which "reflects the significant deterioration of mortgage credit." Shares plunged 7 percent in pre-market trading, or $2.62, to $34.88. The $2 billion loss for McLean, Va.-based Freddie Mac worked out to $3.29 a share, compared with $1.17 a share, in the third quarter of 2006. Losses far exceeded Wall Street analysts expectations of a 22 cent per share loss, according to a poll by Thomson Financial.
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