My Astronomy professor likes to explain methods and models using formulas most students in my class can't wrap their heads around.
He'll explain the formula and go, "See, easy right?" Everyone responds with, "Huh?" I sometimes grab a piece of chalk, stand up in front of the class and start drawing out simple figures they can relate to; circles for stars, clouds for gas. I commence to break down the formula with my illustrations, and the class then goes from, "Huh?" to "Ahhhh".
what ever happened to the time when investing was about giving money to a business you believed had good potential for the future? Now these banks and insurance companies, financial services, etc. Even the expert fund managers will say that these businesses are so opaque they can't understand them enough to fairly value them! It seems all about trying to create ways to make money without fulfililng a real demand or providing a service that actually contributes to the economy.
Mark to model is simply the internal price (ie the banks price) that has been generated from their price models... It might not be the price they paid, or the market price, but what their computer models say the asset is worth...
I love it how he needs to get in 'in need of a drink' even if the timing and lead is completely innapropriate haha! Good stuff..
This video is dead on with what mark to market is but I'm pretty sure, according to FAS 157R companies have the option to value debt and equity at fair value or historical value.
My house has gone down x% but eventually it will go up (6 months, 1 yr., 5 yrs, ...) If its sale price isn't based on the market then I should be able to sell it for what it WAS worth b/c eventaully it will get back to that value. This is the most stupid concept ever!
Is it just me or do a lot of people in finance believe you can invest in something without any risk. That is one reason why a CDS was created. I have a CDO, but it is risky so I am also going to buy a CDS. Econ.-Risk=Destruction
only those securities held "available-for-sale" are marked to market because its the intention of the security holder to sell the long-term asset in the market as though the security is liquidity as money.
if you understand that a home is an "illiquid" investment, you should understand that a bucket full of 10,000 mortgages can be far less liquid. At one time there was a more active market in buckets full of mortgages, but that market has come to a screeching halt. Not many of the mortgages are in default and going into forclosure, but the crisis is due to the associated fear. Mark-to-market rules now force banks to understate the true value of their buckets = bad rule!
Oddly enough, liquor sales have increased. The local Pepsi bottling plant I visited this month said they're seeing record sales as well. I guess everyone's doing mixers!
u sir.. are a fuctard.. people like you are compleat idiots.. there could be 100 million people starving and without homes or food.. and you will still try to explain it away with your fuzzy numbers and whiteboards.. because you people have lost sight of what is of any true value.
And what exactly has that to do with this presentation? His videos are doing an excellent service actually explaining the arcana of finance in a way reachable to the common man. I agree that the system is utterly corrupt though.
You'd think you would actually support somebody explaining the workings of the market to the average person. The market is not going anywhere for good or bad. At least with videos like these people don't get taken for suckers when they inevitably have to deal with Wall Street or other world markets. The dissemination of knowledge is actually a good thing don't you think?
i agree the dissemination of knowledge is a GREAT thing.. i wish more of it would happen.. unfortunatly this is not the type of knowledge that would help the people from not becoming suckers. that kind of knowledge is kept close between a small group.. and unfortunatly for you.. you arent allowed into those boardroom meetings.
hey Atheist.. that would really hurt my feelings.. if i gave a flying fuck.. what u thought i carefully read over what i wrote like 100 times to check to see if i had any typos.. ive delt with your type b4.. you dont arguee the valitity of my statements.. you rather focus yourefforts and attention on things that are irrelivent.. such as if i crossed my Ts and dotted my I's.. and again i will say because you people have lost sight of what is of any true value.
All the chap in the video is doing is trying to explain why the market is having the reaction that it is, how on earth you justify your baseless insults towards him in your first post is beyond me.
Go yell at CEO's who are giving themselves multimillion dollar bonuses after ruining their companies if you are feeling anger that need venting.
I know the comment system is flawed in that it does not let us correct typos, its just funny sometimes when an ad hom attack like yours backfires.
im not mad at the guy in the video.. he actually seems like an alright guy.. i would prob have a drink and some laughs with the guy..the problem is the there are alot of great people sleepwalkin into oblivion. yes everything looks just fine on paper and writen in numbers. you could justify anything looking at those type of numbers.
I honestly would of had no issue with what you said in your first post other then the first twelve words. I am very unhappy with how our free market trading has allow not only the USA but the whole global economy to take a nose dive.
But insulting an analyst for explaining things is like screaming at the weather man on TV cause its snowing outside, he does not make the market what it is anymore then a weatherman makes the weather.
Your disdain would be much better aimed at those in political positions who removed market regulation and allowed this mess to happen in the first place.
also you have it in you mindset that the people in government and the people in banks on wall street are separate..well buddy do i have news for you.. they are in bed with eachother.
You have to take that to the next step and say we the public are in bed with them since we vote in the people in government.
The greed was spread all around, if Joe Public had no hand in this then why have so many gotten themselves into five figure debt with credit cards?
But i agree that our government has totally sold out to big business. Notice there was no purge of the lobbyists from the Bush era when Mr Obama came to power.
The same checks are still being written by the same crooks.
ok blame the guy who doesnt have any power or control over anything. yea its all my fault.. has nothing to do with the madolfs of the world.. has nothing to do with CEO bounus.. nothing to do with the wealth , power , and control being put in the hands of a few people in closed boardroom meetings.. thats right ewap8 keep beleiving the people that keep showing you new and impoved ways of making /creating money. aka fucking the people over.
Damn, I need a drink! lol. These videos are by far the best presentations I have ever seen.
thingshappens 1 year ago 3
My Astronomy professor likes to explain methods and models using formulas most students in my class can't wrap their heads around.
He'll explain the formula and go, "See, easy right?" Everyone responds with, "Huh?" I sometimes grab a piece of chalk, stand up in front of the class and start drawing out simple figures they can relate to; circles for stars, clouds for gas. I commence to break down the formula with my illustrations, and the class then goes from, "Huh?" to "Ahhhh".
Thanks Pat!
lnfiniteKnowledge 1 year ago
I'd have a drink regardless! =)
OneSearchingForTruth 1 year ago
what ever happened to the time when investing was about giving money to a business you believed had good potential for the future? Now these banks and insurance companies, financial services, etc. Even the expert fund managers will say that these businesses are so opaque they can't understand them enough to fairly value them! It seems all about trying to create ways to make money without fulfililng a real demand or providing a service that actually contributes to the economy.
cantroos 1 year ago 2
Mark to model is simply the internal price (ie the banks price) that has been generated from their price models... It might not be the price they paid, or the market price, but what their computer models say the asset is worth...
I love it how he needs to get in 'in need of a drink' even if the timing and lead is completely innapropriate haha! Good stuff..
johnysoup 1 year ago
This video is dead on with what mark to market is but I'm pretty sure, according to FAS 157R companies have the option to value debt and equity at fair value or historical value.
tbscrazy12 1 year ago
explain what is mark to model
khanpreston1 1 year ago
that is what kenny boy lay from enron was doing
altha2008 1 year ago
Raise capital and negotiate secondary trading of equity and debt at UnifiedMarkets.
robrown1 2 years ago
My house has gone down x% but eventually it will go up (6 months, 1 yr., 5 yrs, ...) If its sale price isn't based on the market then I should be able to sell it for what it WAS worth b/c eventaully it will get back to that value. This is the most stupid concept ever!
Is it just me or do a lot of people in finance believe you can invest in something without any risk. That is one reason why a CDS was created. I have a CDO, but it is risky so I am also going to buy a CDS. Econ.-Risk=Destruction
high5flyer 2 years ago
Geitner can take lessons from this guy regarding clear explanations to the public on what he is not so clearly doing with our taxpayer dollars.
Momsdogs 2 years ago
great video
seks03 2 years ago
if governments allow assets to not be marked to mark it will destroy market. it's obvious.
Decebal825 2 years ago
so is this good for citigroup?
queenssupreme1 2 years ago
only those securities held "available-for-sale" are marked to market because its the intention of the security holder to sell the long-term asset in the market as though the security is liquidity as money.
shiznaw 2 years ago
@shiznaw No you have the opiton under FAS 157R. and they are run through OCI and do not effect regular earnings because they are unrealized.
tbscrazy12 1 year ago
at 6:38.....this guy is wrong.
shiznaw 2 years ago
This has been flagged as spam show
if you understand that a home is an "illiquid" investment, you should understand that a bucket full of 10,000 mortgages can be far less liquid. At one time there was a more active market in buckets full of mortgages, but that market has come to a screeching halt. Not many of the mortgages are in default and going into forclosure, but the crisis is due to the associated fear. Mark-to-market rules now force banks to understate the true value of their buckets = bad rule!
bassthunder 2 years ago
Great video and info explained in simple terms thanks.
australiandownunder 2 years ago
Can asset prices be manipulated to induce problems with Mark to Market then
panleh75 3 years ago
well done....again!
wanderingeyes11 3 years ago 3
i guess the alcoholic drink market must be booming then lol
cyber7654321cyber 3 years ago 9
Oddly enough, liquor sales have increased. The local Pepsi bottling plant I visited this month said they're seeing record sales as well. I guess everyone's doing mixers!
Calliber50 3 years ago 3
'Vices' such as liquor and tobacco tend to do well during hard economic times.
007e 3 years ago
This has been flagged as spam show
good video, thanks
ewap8 3 years ago 2
u sir.. are a fuctard.. people like you are compleat idiots.. there could be 100 million people starving and without homes or food.. and you will still try to explain it away with your fuzzy numbers and whiteboards.. because you people have lost sight of what is of any true value.
captcaveman4201 3 years ago
And what exactly has that to do with this presentation? His videos are doing an excellent service actually explaining the arcana of finance in a way reachable to the common man. I agree that the system is utterly corrupt though.
KarlFredrik 3 years ago 12
You'd think you would actually support somebody explaining the workings of the market to the average person. The market is not going anywhere for good or bad. At least with videos like these people don't get taken for suckers when they inevitably have to deal with Wall Street or other world markets. The dissemination of knowledge is actually a good thing don't you think?
poshzombie 3 years ago
i agree the dissemination of knowledge is a GREAT thing.. i wish more of it would happen.. unfortunatly this is not the type of knowledge that would help the people from not becoming suckers. that kind of knowledge is kept close between a small group.. and unfortunatly for you.. you arent allowed into those boardroom meetings.
captcaveman4201 3 years ago
I find humor in you calling someone "a compleat idiot" and you misspell COMPLETE.
The irony of your failure is enjoyable for others.
Atheistprimate 3 years ago
hey Atheist.. that would really hurt my feelings.. if i gave a flying fuck.. what u thought i carefully read over what i wrote like 100 times to check to see if i had any typos.. ive delt with your type b4.. you dont arguee the valitity of my statements.. you rather focus yourefforts and attention on things that are irrelivent.. such as if i crossed my Ts and dotted my I's.. and again i will say because you people have lost sight of what is of any true value.
captcaveman4201 3 years ago
All the chap in the video is doing is trying to explain why the market is having the reaction that it is, how on earth you justify your baseless insults towards him in your first post is beyond me.
Go yell at CEO's who are giving themselves multimillion dollar bonuses after ruining their companies if you are feeling anger that need venting.
I know the comment system is flawed in that it does not let us correct typos, its just funny sometimes when an ad hom attack like yours backfires.
Atheistprimate 3 years ago
im not mad at the guy in the video.. he actually seems like an alright guy.. i would prob have a drink and some laughs with the guy..the problem is the there are alot of great people sleepwalkin into oblivion. yes everything looks just fine on paper and writen in numbers. you could justify anything looking at those type of numbers.
captcaveman4201 3 years ago
I honestly would of had no issue with what you said in your first post other then the first twelve words. I am very unhappy with how our free market trading has allow not only the USA but the whole global economy to take a nose dive.
But insulting an analyst for explaining things is like screaming at the weather man on TV cause its snowing outside, he does not make the market what it is anymore then a weatherman makes the weather.
Atheistprimate 3 years ago
Your disdain would be much better aimed at those in political positions who removed market regulation and allowed this mess to happen in the first place.
Atheistprimate 3 years ago
i dont think so.. if people just did what was the right thing to do.. there would be a need for regulations.
captcaveman4201 3 years ago
also you have it in you mindset that the people in government and the people in banks on wall street are separate..well buddy do i have news for you.. they are in bed with eachother.
captcaveman4201 3 years ago
You have to take that to the next step and say we the public are in bed with them since we vote in the people in government.
The greed was spread all around, if Joe Public had no hand in this then why have so many gotten themselves into five figure debt with credit cards?
But i agree that our government has totally sold out to big business. Notice there was no purge of the lobbyists from the Bush era when Mr Obama came to power.
The same checks are still being written by the same crooks.
Atheistprimate 3 years ago 2
indeed, it is you, captcaveman4201, who is the "fuctard"
ewap8 3 years ago
ok blame the guy who doesnt have any power or control over anything. yea its all my fault.. has nothing to do with the madolfs of the world.. has nothing to do with CEO bounus.. nothing to do with the wealth , power , and control being put in the hands of a few people in closed boardroom meetings.. thats right ewap8 keep beleiving the people that keep showing you new and impoved ways of making /creating money. aka fucking the people over.
captcaveman4201 3 years ago