Monday, July 20, 2009

Pricing Big Shitpile

While I agree that greater transparency about the various chunks of big shitpile would be a good thing, the writers of this piece ignore a major issue: financial institutions don't really want the true value of shitpile revealed because it'll push them into insolvency. It isn't simply that buyers and sellers aren't sure of what things are worth, it's that sellers have an interest in obscuring it.