Toxic Liabilities Are Not Assets

[Donnachaidh]

http://www.oftwominds.com/journal08/zeus10e-08.html

Answering reader response to Imaginary Worth, Empire of Debt: How Modern Finance Created Its Own Downfall (4 part series, links below)

A reader posed excellent fundamental questions on the nature of debt, asset, and liability:


:snip:

Sooner or later we have to recognize a massive fraud has been perpetrated. It needs to be revealed that major companies have trillions of dollars of junk on their books and are likely not solvent according to traditional notions of solvency. So we have a Catch-22, but not one that will be solved by hiding: expose the fraud and risk likely short-term collapse and re-scaling of economic confidence and systems, or cover the symptoms, hide the toxins, and allow them to fester and rot out the economy in a prolonged sickness that may spread and gain momentum beyond attempts to assuage the problems.

EXCELLENT article -- must read!