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Great post, Reggie. I am a little confused by the shift in a chart based on commercial property values to the lower capitalization of banks. Don't the shifting fortunes of the Yen, which never really has been a world reserve currency, have an intermediate role in determining the interface between real assets assets and globally-valued money? While I certainly agree that marking assets to market would facilitate the kind of transparency needed to restore investor (and ultimately business) confidence, investors may or may not find it easier and more profitable to hold assets in Euro, Yuan, or other currencies. Most folks cannot simply print money and dump it from helicopters, as you have noted.

Now, the big money seems to be managed increasingly by sovereigns, which is a big change from the 1980's and 90's. The Chinese and Japanese have recently announced that they want to start spending some of their dollar reserves on North American businesses and other assets. Won't Chinese factories in the US, Canada, and Mexico shift help stabilize the dollar? After all, long rates are beginning to rise, and a couple of the new Fed members are suggesting an end to bond purchases. Even with ZIRP, banks are beginning to notice small businesses again, so is the dollar going to break the crisis mark of 72 in the index? Without MTM the government could allow banks to share real estate with the Chinese at inflated prices and let the market sort it out. Think of it as a Goldman Sachs program run by Geithner and Co. "Plump and dump" on a grand scale.