His perspective on finances is almost always on the money and ahead of the curve.
"Oh Look! More Accounting Fraud!
Wait a second... this isn't actually new!
Remember, The Fed previously (like more than a year ago) announced these swap lines and more-recently announced their extension. So not only is this not new, it's not news!
But the market is up big on the non-news news. Why? Because it appears banks are still going to be able to lie about asset values - for a little while longer.
Actually, it makes banks much more dangerous. Having neutered regulators you see lots of grins and no fear that actual accounting at current value is likely to show up any time soon. This in turn leaves banks levered up the ying-yang and in many cases deeply underwater.
This in not just a US phenomena, although you can sure see it here, as most of the big banks have stock prices of half or less of the claimed "book value." This is of course illogical; if anyone believed those values they'd immediately buy the company and make an instant 100% (or more) profit, even if they had to dismantle and sell off the bank to do it.
Clearly, the market's expectation is that the so-called "values" are lies. And from this belief comes systemic risk, because now any event that threatens to force recognition of true value is an immediate bankruptcy trigger."
http://market-ticker.org/akcs-www?post=194210