Former FDIC Chairman, William Isaac, “can’t come up with any other answer,” so he defaults to the accounting profession to place blame.

Isaac rhetorically asked the participants how the financial system could have come upon such hard times in under two years. “I gotta tell you that I can’t come up with any other answer than that the accounting system is destroying too much capital, and therefore diminishing bank lending capacity by some $5 trillion,” he asserted. “It’s due to the accounting system, and I can’t come up with any other explanation.”

Trouble is, muddled thinking – and outright lying – such as this is taken seriously.