Cash flow, not the mark-to-market price, reveals a security's true value.

The Dodd-Frank legislation has many problems and omissions, and much is still uncertain about implementation. But the new liquidation authority provides for the possibility of making it so that future crises do not involve the bailouts of creditors that truly embodied the problem of having banks that are too big to fail.

The $2 billion loss at JPMorgan Chase (JPM) has reopened debate on the Volcker rule. The proponents of the rule have seized on the story as proof that the Volcker rule is necessary and should be quickly put into effect by regulation. In reality, however, if the facts are as thus far reported, what happened at JPMorgan is proof that the Volcker rule is unworkable and should be repealed. 

Instead of issuing bonds into the Social Security trust fund,the Treasury should issue the bonds directly into your own personal account:your own trust fundofrisk-free assets.

It’s depressing to watch, but it is missing the point that the Volcker rule would not have prevented the loss and is probably unworkable.

A system that lets participants choose between the traditional system and a lower-cost settlement paid in inflation-adjusted Treasuries could ensure the program's solvency.

The banking industry suffered credit crises in the 1970s, 1980s, 1990s, and 2000s. An unavoidable conclusion is that its loan loss reserves were in all cases too small. 

Perceptions of uncertain future events like credit safety or credit risk are inherently subjective and highly influenced by the views of all the others who are doing what you are doing.