Mark-to-Market Accounting Did you know…
“But when FASB 157, a statement from the Federal Accounting Standards Board, went into effect in 2007, reintroducing mark-to-market accounting, look what happened.”
This is the crap… that undermines progress in unclenching the choked market full of poopy assets that no one will buy.
“This complicates the marking process. In the absence of market information, an entity is allowed to use its own assumptions, but the objective is still the same: what would be the current value in a sale to a willing buyer. In developing its own assumptions, the entity can not ignore any available market data, such as interest rates, default rates, prepayment speeds, etc.”
What’s fascinating is that the pain is caused by the very financial wizards who lobby’d and committed all this mess.
You can’t teach a fox to guard the hen house. Good news:
9% unemployment = 91% of people are employed, PS 30% unemployment during the depression…
GM, FORD, Chrysler going under = There are new ops for others and consolidation
Stop watching the news and just get to work
9 million mortgages are underwater. = 67 million are not
lost 2 trillion in consumption from the economy = We have a 14 trillion dollar economy – 2