More evidence for why low teaser rates are an abomination

From Tom Toles. (Thanks to Mrs. CC for the tip.)

The Citi and UBS writedowns: Are we done yet?

A couple of weeks ago, economist Lena Komileva told me that the only thing that would really get credit markets functioning smoothly again was for the big banks to admit that the mortgage securities they owned were worth an awful lot less than previously reported. That would start a mass downward revaluation of asset-backed securities, [...]