Brian Westbury on "Mark to Market"

excellent argument

Category:

News & Politics

Tags:

• obama
• bush
• mark to market
• accounting
• banks
• investing

[Scapone2001]

this is total propoganda, total utter nonsense. to ban mark to market allows the banks to sweep the problem under the rug.

[ficote72]

This desesperate action is an assurance that they are all insolvent and nobody wants their assets at current prices. They will just scare investors away even more from financials.

We will see who is the idiot eating the bait.

[sekharkari]

when everyone is screaming on 'lack of accountabiliy and regulations' i highly doubt Obama adminsitration would dare to resolve this issue. In my opinion, they would leave it..which in my understanding is a right move to see a long term sustainable fix. Lifting mark to mark to make the balence sheets more green further delay in identification of bad debits and bad companies

[7Hook]

no, I didn't say it was mortgage defaults, I said it was the many trillions in derivatives. The rule is an accounting rule that reveals the derivatives for what they are, a massive fraud. CDSs were written by parties who NEVER could have paid off - that's open knowledge, that CDS were a fraud right from the start.

If the stuff had value, markets would recognize the value regardless of the what any rule says. But these things are garbage, only massive inflation will give them apparent value.

[jwhat01]

They wont buy these because they might have to mark them down again with more forced selling. Only 3% of mortgages have defaulted, and you think THIS is causing our entire system to break? Nope. Packages with ZERO delinquencies are trading at 60 cents on the dollar, because the RULE has mispriced the market for them. THE RULE...not the mortgages.

Either method works out the same at maturity...mark to market causes BANKS TO FAIL before maturity. The rule ITSELF causes a credit cruch

[ckondiah]

How can Mark to Market work if there is no market for bank assets? CANCEL IT, CANCEL IT, CANCEL IT, CANCEL IT, CANCEL IT, CANCEL IT. IDIOT BUSH

[7Hook]

there is no market for these securities because no intelligent investor wants to buy them, and that is because they were a fraud to begin with and now the game is up.

The only point at which these toxic derivatives will become valuable again is after a massive inflation, which is what is happening now, in order that these toxic derivatives will not be underwater anymore, and the balance sheets of banks will be restored. That is corruption, and fraud, on a global scale.

[7Hook]

The entire crisis is due to mark to market?

So it wasn't the hundreds of trillions of bad debt created by wall street banking that is the problem, but that mark to market accounting rules require banks to admit that the debt is bad? And so the solution is to eliminate accountability for bankers?

Things are pretty fucking bad if the wall street types are trying to sell horse shit like this.

[itwillsit]

Asserting that a "leak" that we may abandon mark to market accounting "has made the market rally incredibly" is a classic post hoc fallacy.

Aligning the 1938 and 2007 changes to the overall market is more post hoc nonsense. That's coincidence, not proof.

Our problems are a direct result of reallocating wealth from western to emerging countries too quickly. This encouraged terrible misallocations of labor through ill advised deficit spending, fiscal, and monetary policy, which were cover..