Affordable Housing Institute : US

[Continued from yesterday’s Part 1.]
 
Yesterday, using a New York Times article as a springboard, we examined Humpty Dumpty’s question of value: what does value mean, and who decides that it means that? 
 

“Everything’s coming up roses”
 
For reasons I listed yesterday, the assets are often valued by people who have a vast vested interest in seeing them […]

“It’s worth what I say it’s worth.”
 

The louder I shout it, the truer it must be!
 
That, more or less, is the defense offer by Bear Stearns as to the value of enormous pools of highly structured complex instruments on their books, a declaration so patently self-serving and self-interested that, with Bear now absorbed into JPMorgan […]

[Continued from the previous Part 2 and Part 1.]

So far, in exploring how failure to report leads to reporting failure, we’ve used this New York Times article about now-bankrupt New Century, its unlucky auditor, and its troubled but unmoving directors.  By the end of 2006, when new CFO Tajvinder S. Bindra was quizzing his […]

[Continued from yesterday’s Part 1.]
In yesterday’s Part 1 on whether auditors in the subprime mess, in addition to the rating agencies, are culpable for bad information prepared by their clients the subprime loan originators, we looked at this New York Times article about unlucky auditor KMPG and its now-bankrupt client New Century:  
At the […]

If you can’t report the news on time, the news you eventually report is almost always bad.  I formulated this theory in 1977, and it’s served me well ever since.

It was a time of tight jeans and floppy hair
 
As the subprime mess reaches saturation of troubled borrowers and dissipates into tardy omnibus rescue legislation […]