I confronted two problems while writing these papers. First, it is difficult to condense lengthy discussions into simple themes. Second, I became aware of new information after the drafts were submitted (which was several months prior to the publication of each paper). This letter endeavors to address these two problems.
My first paper focused on the debtor's contemporaneous security prices. While the paper took up twenty-six pages in this journal, it could be summarized in just three words: “the market, stupid.” This phrase is derived from “the economy, stupid” theme from Bill Clinton's presidential campaign during the 1992 election. Courts have consistently focused on the market in the context of retrospective solvency analyses, just as Bill Clinton consistently focused on the economy while campaigning for president in 1992.
Absent proof that the market was misled, courts have consistently deferred to contemporaneous market data in the context of retrospective solvency analyses....
