Making profits is easy if you can cook the books

The major banks in the US supposedly bounced back from the brink of disaster this quarter.  On paper it looks like they made a profit.  The thing is its mostly just smoke and mirrors, a parlor trick.  They sell things from one part of their business to the other, and call it a profit.  They consider bailout money to be profit too.  These tricks wouldn’t have worked, except they got Congress to change the accounting laws.

When you get a bunch of lawyers and bookkeepers trying to fix the economy, they changes the laws and “fix” the books

This article from bloomburg basically sums it up.

Bank Profits From Accounting Rules Masking Looming Loan Losses

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