Stuff is worth what people will pay for it

Yeah, so, how much are banks worth now? They're only worth what people will pay for it.

MarketWatch today hit up Marc Groz, founder and chief investment officer of Topos LLC. :

"What are these toxic assets worth? The correct answer is: It depends on what happens and what people do. We're heading into a long weekend, and [Treasury Secretary Timothy] Geithner is off to Europe, and still nobody knows how much these assets are worth."

He right. We don't know what it's worth. And Timmy G. has his hands full until we start seeing some sort of clarity in valuing financials.

But they gotta be worth something, right? The price of stuff drops until someone buys it.

It's just how things work.

Sweaters at Macy's are like, really cheap right now. Even I can afford that sweet, sweet cashmere.

But those sweet, sweet sweaters are a lot like those toxic assests Citi and friends are stuck holding. Excuse me, that you and me and Citi and friends are stuck holding.

Macy's thought they could make a killing selling $150 Club Room sweaters. Based on those awesome profit margins, getting big and expansive sure looked attractive. Turns out, people only really want to pay like $40 for 'em. And now all those stores they opened up are gushing wounds.

But hey, Macy's same-store sales weren't as terrible in January as anyone thought they'd be.

Maybe Citi and friends have a chance...