This is the truth, nothing but the truth, and the whole truth, with a waterboard as my witness!

Thursday, September 25, 2008

Details after the deal

I have to wonder if the argument that you don't need a fire code to put out a fire is adequate to describe the mechanics of this proposed baliout?

My experience with markets and trading, economics, and accounting leads me to understand that the three topics are often discussed together but are actually different.

There will be more uproar after the fact of the deal than before it.

I was thinking of the DOI BIA accounting and the issues involved, where poor record keeping or even an understanding of what was needed to be collected, or the cost of collecting versus the underlying assets information. I know that the claims on some of the accounts were pennies where the costs of servicing the account was dollars.

I have also seen vernacular crisis in management and project planning. As an example the term is called a bailout for the proposed plan, and beyond semantics; if the plan was to include warrants then the term 'investment' would be applicable.

And finally, it is incredibly rare to meet an individual who genuinely is classically conversant in all three topics: markets and trading, economics, and accounting.

Currently the discussion has been at the macro economic level with some discussion into trading and markets (warrant and stock), and then finally an issue of to-maturity pricing or accounting.

As you see from this video words are weak. It will have to be a re-iterative development process where without "an assumptiom" of traditional project planning that everybody can agree on vernacular, where a system is laid forth, people sit in their respective roles, and the question is asked: Do you have the tools you will need to do your job?

I would also suggest that there be three indivduals with a tiger team assigned to them to setup their unique systems and operate independently and manually (off system), so as to accelerate a RAD process that will meet genuine business requirements.

I wanted to make this post so I could google this later and cite it when the even larger hearings occurr when the process is scrutinized later.

But trust me, markets and trading, economics, and accounting are different.

I think from an economics standpoint that the "bailout" is a good proposal.

The Devil is in the details and ought to be interesting to follow if you have the corpus of knowledge to do so. I'm not still certain how the derivatives can be unwound and also know that these positions will require an almost above tsc to process this information, or to compartmentalize it.

Well with the touting, street whispers, and a culture of insider status.. this ought to be damn interesting.

Think the hearings were fun?

Well I bet that this is only an opener on a long and interesting season.

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