Phrase of the Day: Credit Value Adjustment

This is why the banks all of a sudden are full of good news: credit value adjustments.

They're selling off bad debt at inflated prices, then buying it back at distressed prices--the difference is their profit. Only banks can do this, thanks to the Fed regulatory system--otherwise, every homeowner, real estate owner (commercial or residential), OR even every indebted credit card holder could do this.

Our economy is NOT improving, in spite of recent news commentary--only the ways to disguise a continually-ailing one are. Leave it to banks to find ways to profit from loss and catastrophe (even self-created ones).

We are going to be at this point (or worse) for some time to come.