It jumbled everything up for some reason.

"Due to the frequent resetting of interest rates, the carrying value of auction rate securities approximates fair value."

It did represent fair value at that time.....................

"The investments consist of student loan auction rate preferred instruments issued by various state agencies pursuant to the Federal Family Educational Loan Program (FFELP). These investments are of high credit quality and the AAA credit ratings of the investments have been reaffirmed since February 2008. These instruments are collateralized in excess of the underlying obligations, are insured by the various state educational agencies, and are guaranteed by the Department of Education as an insurer of last resort. We have the intent and the ability to hold these investments until the anticipated recovery period which we believe will be less than twelve months."

The problem with this statement is clear, you can't sell something if the market doesn't exist. The ARS they are holding is insured but they didn't plan on keeping it until full maturity of 30 years. There intention was just like everyone else's, sit on it for a while and than turn it over for auction. That is the problem, there is no auction market anymore. It has collapsed. BRIAN PLEASE CONTACT PTSC AND SEE IF THEY CAN GIVE US A CURRENT UPDATE.