Comments for FASB to Propose Changes to Mark-to-Market
Nemo says:
All assets are worth precisely what I say they are worth.
Nemo Mon Mar 16 14:54:00 2009 CDT #
Margin Call of Cthulhu says:
Nemo said:
All assets are worth precisely what I say they are worth.
This sounds suspiciously like my patented valuation model, Mark to Cthulhu, wherein assets are valued according to my ever-changing whim. You'll be hearing from my lawyer! [/snark]
A serious, dumb question: if they can use "significant judgment" now, what could they use before? A Magic 8 Ball?! {{Shakes ball.}} 'Future cloudy. Stockpile canned food.'
Parent Post
Margin Call of Cthulhu Mon Mar 16 15:35:48 2009 CDT #
CRbot says:
This comment thread has been HALO-IZED by CRbot.
http://realize.org/cr/halokit.php?halourl=http://www.haloscan.com/comments/calculatedrisk/5248166278504744923
CRbot Mon Mar 16 14:54:59 2009 CDT #
Bob Dobbs says:
So much for transparency. It's the triumph of new-age finance -- "visualize the value, and it will be so."
It's official now -- the stock market is for gamblers only, and connected ones at that. The assymetry of information between issuer and buyer is too great.
Bob Dobbs Mon Mar 16 14:56:06 2009 CDT #
Alo says:
This will be the big problem--why should investors put any money into a business that can use fake accounting?
Parent Post
Alo Mon Mar 16 17:33:45 2009 CDT #
John M says:
Bob Dobbs -
I feel your pain. It took me years to learn how to spell that word correctly.
Parent Post
John M Mon Mar 16 21:52:34 2009 CDT #
fudgejuicyairy doddie says:
NEW YORK (AP) - Some critics are seizing on comedian Jon Stewart's attacks of CNBC to launch an online petition drive urging the network to be tougher on Wall Street leaders.
The liberal media watchdog Media Matters for America and some economists are behind the effort, launched Monday. They're asking CNBC to hire economic voices with a track record of being right about the current crisis and do more to hold business leaders accountable
http://www.breitbart.com/article.php?id=D96V7JR82&show_article=1
fudgejuicyairy doddie Mon Mar 16 14:56:52 2009 CDT #
Baa says:
St. Jon the Self-Righteous the first post-modern demagogue.
Parent Post
Baa Mon Mar 16 17:13:56 2009 CDT #
Darjeeling says:
Lord help us....
Darjeeling Mon Mar 16 14:57:10 2009 CDT #
Jerry says:
This is the change I can believe in?
Change; I do not think that word means what you think it means.
Jerry Mon Mar 16 14:57:40 2009 CDT #
John M says:
Jerry -
I haven't yet seen a panhandler on Spring Garden Road with a can labeled "Change We Need," but it can't be long.
Parent Post
John M Mon Mar 16 21:55:52 2009 CDT #
Rob Dawg says:
The proposal for estimating market values will take into consideration whether there is an active market (such as the number of recent transactions, whether price quotes are based on current information, whether price quotes vary substantially, etc.). If there is not an active market, then the quoted price is a distressed transaction unless certain other conditions exist.
Collar stays are henceforth worth the greater of either market or fantasy.
Rob Dawg Mon Mar 16 14:59:05 2009 CDT #
Nemo says:
They're asking CNBC to hire economic voices with a track record of being right about the current crisis and do more to hold business leaders accountable
Yeah good luck with that.
...
With sufficiently "flexible" accounting rules, no bank can ever be insolvent. Why the authorities did not "fix" this sooner is beyond me.
Nemo Mon Mar 16 14:59:48 2009 CDT #
Yalt says:
With sufficiently "flexible" accounting rules, no bank can ever be insolvent. Why the authorities did not "fix" this sooner is beyond me.
Preparing a financial statement and assessing capital adequacy seem to be separate matters. It's not clear to me why FASB rules for valuation of assets would be binding on regulators (and vice versa, obviously).
Parent Post
Yalt Mon Mar 16 15:15:37 2009 CDT #
lars says:
Yet another sign that a lost decade a la Japan is likely in our future. No real recovery until bad assets come clean on balance sheets.
lars Mon Mar 16 14:59:52 2009 CDT #
sm_landlord says:
From WSJ:
"Mexico says it will increase tariffs on about 90 U.S. products in retaliation for decision to cancel program that allowed some Mexican trucks to transport goods within the U.S."
No link yet. This is change we could do without.
sm_landlord Mon Mar 16 14:59:58 2009 CDT #
albrt says:
Don't miss the powerful "Ode To Bankers" by Emails to Obama in the short thread below this one. It pretty much sums things up.
albrt Mon Mar 16 15:00:06 2009 CDT #
fudgejuicyairy doddie says:
In my humble opinion we should keep the mark to market for these assets, however, they should be in a transparent purgatory, where you dont have to write them off, as long as the company has sufficient capital to cover the present loss. knowing that the asset can continue to both lose value as well as gain, and what it is truly worth is what someone will pay for it.... So it shouldn't be totally off book and blind, yet not have to be on book and MTM, but MTM, in limbo, with their stated capital to cover the loss, not total value....
fudgejuicyairy doddie Mon Mar 16 15:00:34 2009 CDT #
bearly says:
[If there is not an active market, then the quoted price is a distressed transaction ]
So, I thought timmay's plan involves creating an active market. This change is pointless, unless timmay decides again to change his nonsense hedgie backstop free taxpayer money giveaway.
bearly Mon Mar 16 15:00:37 2009 CDT #
Automonkey says:
Welcome to the land of make belief. Fucktards.
Automonkey Mon Mar 16 15:00:39 2009 CDT #
Jerry says:
All assets are worth precisely what I say they are worth.
I've got a '84 camero. Could you value that for me so I can get enough for it to buy the latest greatest? I may not be able to sell it on the open market for that amount, so you might have to buy it from me too. Don't worry though, eventually it will become a collectors item and you can sell it for that much.
Jerry Mon Mar 16 15:01:10 2009 CDT #
goadam says:
Just say it's worth a million and borrow against it.
Parent Post
goadam Mon Mar 16 16:27:43 2009 CDT #
sm_landlord says:
Looks like they threw Elmo under the bus at the close.
sm_landlord Mon Mar 16 15:01:11 2009 CDT #
ac says:
This seems consistent with a collapsing ponzi-finance complex.
Anything to prolong the prior illusions of wealth that the economy was built on.
Try to visualize standing on a ledge on the side of a building that's, say, 10 feet above the ground and a few feet wide.
Every second that passes the ledge gets a foot higher and an inch narrower.
You're afraid to jump and fall 10 feet, so you wait and suddenly you're staring down 15 feet and you've now got less ledge to stand on.
That's how ponzi finance is:
The only way out is down.
The longer you wait the bigger the splat.
The only question is how far down.
ac Mon Mar 16 15:01:46 2009 CDT #
goadam says:
books we don't need no stinking books.
Parent Post
goadam Mon Mar 16 15:07:35 2009 CDT #
NateTG says:
"Looks like they threw Elmo under the bus at the close."
Huh? Do you mean that Elmo ran into Kermit?
NateTG Mon Mar 16 15:02:37 2009 CDT #
RuffRednSore says:
What happened to rally monkey? I thought this rally today was not to be underestimated. Talk about a reversal.
RuffRednSore Mon Mar 16 15:02:39 2009 CDT #
JS123 says:
How do we comment during the 15 day comment period? I can think of some comments I'd like to make.
JS123 Mon Mar 16 15:02:51 2009 CDT #
Anonymous says:
js123 when the guidance is published for comment in a couple days, there will be an invitation for comment letters on it, and an email address. www.fasb.org
You can send comment letters that way. And unless you use profanity or threats, they are almost always published from what I've seen.
Parent Post
Anonymous Mon Mar 16 15:19:15 2009 CDT #
Anonymous says:
Contact FASB- after we read the proposal :)
Board Members Email Address
Robert Herz rhherz@fasb.org
Thomas Linsmeier tjlinsmeier@fasb.org
Leslie Seidman lfseidman@fasb.org
Marc Siegel masiegel@fasb.org
Lawrence Smith lwsmith@fasb.org
Parent Post
Anonymous Mon Mar 16 16:18:02 2009 CDT #
pd130 says:
Verbally, for starters.
Parent Post
pd130 Mon Mar 16 18:02:01 2009 CDT #
GS Trading Desk says:
Must have been buy the rumour, sell the news.
Financial sector is down today!
GS Trading Desk Mon Mar 16 15:03:46 2009 CDT #
debtinator says:
We're all Argentina now.
debtinator Mon Mar 16 15:03:56 2009 CDT #
CRbot says:
The Latest from Jesse:
Alcoa Slashes Dividend from .17 to .03 Per Share
CRbot Mon Mar 16 15:04:08 2009 CDT #
fiduciary doodie says:
for ever now known as fiduciary doodie... as anyone cares...
fiduciary doodie Mon Mar 16 15:04:14 2009 CDT #
iceman says:
Why would I want to buy financial shares now? They don't pay cash dividends, and they're now allowed even more freedom to mark-to-make-believe.
iceman Mon Mar 16 15:04:38 2009 CDT #
Cinco-X says:
They don't pay a cash dividend because all the money went into bonuses.
Parent Post
Cinco-X Mon Mar 16 15:09:59 2009 CDT #
RockyR says:
The entire country is now on Prozac. Unreal.
Elmo is alive and well at the close. I'm glad... GLAD!!! to see the markets don't like this news. That means there are at least a FEW sane people left.
Bob Dobbs +1
RockyR Mon Mar 16 15:04:47 2009 CDT #
Sexy Derivative says:
proposed permitting companies to use “significant judgment” in valuing assets.
Oh, it'll be significant, you betcha.
Sexy Derivative Mon Mar 16 15:05:06 2009 CDT #
steinly says:
why do they need to do that?
Look, market was UP again at the close today.
Crisis over.
8-)
steinly Mon Mar 16 15:05:56 2009 CDT #
fiduciary doodie says:
JS123 hold on and i will see if there is a link to federal register....
fiduciary doodie Mon Mar 16 15:05:59 2009 CDT #
ac says:
The liberal media watchdog Media Matters for America and some economists are behind the effort, launched Monday. They're asking CNBC to hire economic voices with a track record of being right about the current crisis and do more to hold business leaders accountable.
Let me guess: So long as they don't advocate fiscal responsibility or believe that massive government borrowing is just a much of a problem as massive consumer and financial sector borrowing.
Amirite?
ac Mon Mar 16 15:06:08 2009 CDT #
goadam says:
My hot ass is worth a million bucks. Now give me the money.
goadam Mon Mar 16 15:06:51 2009 CDT #
sm_landlord says:
"Huh? Do you mean that Elmo ran into Kermit?"
Since we closed only a hair below the open, I figured they stopped Elmo somehow. Kermit left for the bar at 2:00. Lazy darn frog...
sm_landlord Mon Mar 16 15:07:22 2009 CDT #
JS123 says:
From the Bloomberg article:
Herz was responding to calls from Committee Chairman Barney Frank and Representative Paul Kanjorski, the Pennsylvania Democrat who leads the panel’s capital markets subcommittee, to move quickly to help banks.
Ah Barney Frank.
JS123 Mon Mar 16 15:09:18 2009 CDT #
Nemo says:
Classic "sell the news" reaction. Rally is nowhere near over yet.
Disclaimer: My market calls are always wrong.
Nemo Mon Mar 16 15:10:34 2009 CDT #
Anonymous says:
Who will believe the banker's valuations? It will be like listening to fishermen brag "I caught one THIS big!"
Anonymous Mon Mar 16 15:11:00 2009 CDT #
cd says:
goadam, You better insure that hotass, the word on the street is AIG is still in business....HotAss has been known to cause accidents on streets fronting the beach...
cd Mon Mar 16 15:11:57 2009 CDT #
Guest says:
"improvements" in mark-to-market rules? That is very, very bigbrother.
Guest Mon Mar 16 15:12:28 2009 CDT #
z says:
... Marx markets change to you!
z Mon Mar 16 15:12:38 2009 CDT #
Comrade-Dope jg (jg) says:
Herz is a girly man, otherwise known as a p***y.
Spine of Jello, the schmuck.
Comrade-Dope jg (jg) Mon Mar 16 15:12:41 2009 CDT #
Rorschach says:
The accumulated filth of all their sex and murder will foam up about their waists and all the whores and politicians will look up and shout “SAVE US!” …
…And I’ll look down and whisper “no.”
Rorschach Mon Mar 16 15:12:46 2009 CDT #
Gareth G says:
Personally, I would save the whores.
Parent Post
Gareth G Mon Mar 16 15:14:50 2009 CDT #
Jett Rink says:
If Spitzer's is any indication, I'd have to say 'meh'.
Parent Post
Jett Rink Mon Mar 16 16:03:27 2009 CDT #
Mark2Make-Believe says:
Not sure why it didn't post
here's the FASB real or is it make-believe link (it's hard to tell what's real anymore)
http://craig.teamline.cc/fasb_archive3 (audio archive of today's FASB meeting)
http://fasb.trz.cc/archive.php
and why http://www.fasb.org/ has a .cc level domain for their archives is beyond me -
Mark2Make-Believe Mon Mar 16 15:12:54 2009 CDT #
ponziMCC says:
“significant judgment” in valuing assets.
roflmao
ponziMCC Mon Mar 16 15:13:42 2009 CDT #
bankerwannabe says:
Does anyone know what other "Level 3" valuation techniques are available?
The example given is NPV of cash flows. That actually seems a reasonable valuation technique, but I'd feel a lot better about it if NPV of cash flow was THE specific mandate, not just an example.
This article really isn't specific about how assets will be valued, leading me to believe there will be dangerous amounts of flexibility.
Also, apologies in advance for a naive question, but what is the difference between the "credit portion" of a loss and the other portion of a loss?
bankerwannabe Mon Mar 16 15:14:15 2009 CDT #
dryfly says:
The example given is NPV of cash flows. That actually seems a reasonable valuation technique, but I'd feel a lot better about it if NPV of cash flow was THE specific mandate, not just an example. - bankerwannabe
The problem w/ NPV is that a lot of the troubled assets were 'innovative'... so they don't actually put a lot of early cash demand on the borrower [who by paying back eventually DOES provide the cash]... so there isn't that big of an early cash flow to indicate whether the NPV will work out or not. It is all back loaded.
Say for example teaser rate 'pick a pay' option mortgages in RE or highly 'reserved' CRE deals... a small early default problem will show up as a small blemish in over all NPV but indicate MUCH larger problems to come once the reserves are used up (CRE case) or the interest resets &/or recasts (option ARM or pick a pay RE mortgages).
None of those subtle shifts would show up in the NPV but they market gets it and won't touch that crap - not anymore.
I am all in favor of NPV for more typical traditional instruments but I don't know anything that would work to model the slice and dice exotic instruments Wall Street has out there now.
Parent Post
dryfly Mon Mar 16 16:35:34 2009 CDT #
Yalt says:
I am all in favor of NPV for more typical traditional instruments but I don't know anything that would work to model the slice and dice exotic instruments Wall Street has out there now.
Yes. And wasn't that precisely the point? The very core of the modern investment bank model was the creation of hard-to-value instruments where the bank had an information advantage over potential customers.
Parent Post
Yalt Mon Mar 16 16:49:38 2009 CDT #
JLR says:
There is no better way to manipulate the value of an asset than an NPV of all future expected cashflows.
Parent Post
JLR Mon Mar 16 16:36:31 2009 CDT #
Dash says:
oh please. first the banks go "well, we're making great profits (if you don't include our losses) and now they're in a mad rush to fake Q1 numbers.
how does this create confidence in the markets?
Dash Mon Mar 16 15:14:57 2009 CDT #
Anonymous says:
It's obvious that the market does not want transparency. Everybody just wants to continue to believe a lie rather than face the harsh truth and I guess if everybody goes along with the lie it becomes the truth.....or something like that.
Parent Post
Anonymous Mon Mar 16 15:26:08 2009 CDT #
goadam says:
Pay no mind to the man behind the curtain.
Parent Post
goadam Mon Mar 16 15:31:35 2009 CDT #
John M says:
Dash -
I have been calling this the "C-leak sucker rally" up on our sidebar.
Parent Post
John M Mon Mar 16 22:01:00 2009 CDT #
fiduciary doodie says:
JS 123 the FASB will have to post for comments any proposed changes in the federal register for 60 days. They have not done that yet. Problem as i heard it during cspan testimony when they proposed having something in 60 days the congress said too long we have 3 pieces of legislation that will come up before that, head said i will see what we can do... they said by april 1...he replied we will try...
fiduciary doodie Mon Mar 16 15:15:07 2009 CDT #
Curlydan says:
disgusting move...look out below for the S&P
Curlydan Mon Mar 16 15:16:10 2009 CDT #
debtinator says:
Ahh! This is how Citi can claim a profit. (got it)
debtinator Mon Mar 16 15:16:34 2009 CDT #
mark says:
Hey, the banks announced last week they're profitable, things are going great, so why do we need to suspend M2M?
mark Mon Mar 16 15:17:38 2009 CDT #
Guest says:
mark said:
"Hey, the banks announced last week they're profitable, things are going great, so why do we need to suspend M2M?"
The only reason they announced they are (will be) profitable is because they know that M2M is going to be changed by the time they release their earnings reports.
It's one big, organized scam.
Parent Post
Guest Mon Mar 16 17:17:15 2009 CDT #
Nemo says:
Dash --
how does this create confidence in the markets?
By eliminating the possibility of any major bank being declared insolvent (or "not well-capitalized") and being forced into an equity raise or a receivership regime or whatever.
Good for the banks, bad for everybody else. The only question is why anybody is surprised by this.
Nemo Mon Mar 16 15:20:19 2009 CDT #
JLR says:
But, is it really good for the banks in the long-run? No. Because if investors don't believe your financial statements, they go away in a hurry. If it is thought your cooks are booked, than so are you.
I bet that this change will have little impact in the end, or end-game that is.
Parent Post
JLR Mon Mar 16 16:41:04 2009 CDT #
nova says:
The accumulated filth of all their sex and murder will foam up about their waists and all the whores and politicians will look up and shout “SAVE US!” …
…And I’ll look down and whisper “no.”
You said that before. Got any new material?
nova Mon Mar 16 15:20:37 2009 CDT #
fiduciary doodie says:
good point Mark....me and some friends were discussing same thing....profitable, with MTM, only exception is that this is a lull before the ARM and IO loans reset.. so round 2 is coming in before the CC burst...I say around end April end may we will start seeing effects of first wave of ARM fallout
fiduciary doodie Mon Mar 16 15:21:00 2009 CDT #
JS123 says:
Thanks fiduciary doodie .
JS123 Mon Mar 16 15:22:00 2009 CDT #
nova says:
And I’ll look down and whisper “no.”
Plus The Big "G" writes with a bush or on the wall. No blogs...Plus why whisper? Is that something you normally do? Or is it more scary that way?
nova Mon Mar 16 15:23:29 2009 CDT #
Divide by 0 says:
Nova,
Of course the whispering is more ominous especially coming from lips pursed in a cruel smile.
And then ... they found that the call was coming from their own boiler room!
I'm starting a casting call for "Mark to Market II"
Parent Post
Divide by 0 Mon Mar 16 16:00:25 2009 CDT #
cd says:
thread music....
http://www.youtube.com/watch?v=s7Mvrl1NPQM
cd Mon Mar 16 15:23:45 2009 CDT #
Anonymous says:
"FASB will also propose that the full market loss continue to be reported through earnings (and capital) only if the entity intends to sell or will be required to sell the security prior to its recovery."
That's a friggin' joke right??
Just dump it all in Level 3 and extend that to infinity why don't they?
Ciao
MS
Anonymous Mon Mar 16 15:26:12 2009 CDT #
KnotRP says:
So we've been enduring all this pain awaiting a simple accounting rule change? I'm shocked, shocked, I tell ya...
KnotRP Mon Mar 16 15:26:39 2009 CDT #
Anonymous says:
The question I gotta ask is:
If banks having transparently strong balance sheets (ie clear of unknown CDS,SIV values/liabilities etc) would restore all kinds of confidence to the economy/borrowers, why don't some of the stronger regionals merge (with further backing/capitalization from some investment funds) and shout it from the rooftops and steal customers like crazy from the big phonies?
Maybe because there currently are not enough viable customers left (ie those who are most credit worthy are battening down and staying far away from loan officers and consumption/investment/expansion)?
Feels like we have a ways to go . . .
Anonymous Mon Mar 16 15:27:53 2009 CDT #
Anonymous says:
So, will 9 out of 10 banks now report a net income? Pick-a-number-you-like Accounting is now here!
Anonymous Mon Mar 16 15:28:02 2009 CDT #
Morocco Bama says:
Why don't we just change it to what they want and be done with it.
They want to change it to Mark To Whatever Suits Our Current Purposes.
I'm tired of arguing about it. Let them do it and see if any of them trade with each other.
Morocco Bama Mon Mar 16 15:28:41 2009 CDT #
Mr. T. says:
I got to give it to Obama's team.....they are good at disseminating a coordinated propoganda campaign. I only wish there was more to this show than that.
Mr. T. Mon Mar 16 15:29:24 2009 CDT #
FASB is AIG, SIFMA and Wall street says:
Liddy, who is expected to face a criticism tomorrow when he appears before a congressional subcommittee investigating the insurer's bailout, said: "I do not like these arrangements and find it distasteful and difficult to recommend to you that we must proceed with them.
"I would have designed these differently and at significantly lower levels. I am committed, however, to working within the existing arrangements … Honouring contractual commitments is at the heart of what we do in the insurance business."
It's all fraud and FASB is the biggest crook in the game of GAAP! =-O :(
FASB is AIG, SIFMA and Wall street Mon Mar 16 15:30:04 2009 CDT #
nova says:
Quit Bitchin ya bunch of Winkies. The security of the United States is the issue here. Not your little elite ideas about accounting crap.
nova Mon Mar 16 15:30:23 2009 CDT #
Michael says:
The market went down because of the new Cramer Paradigm. The market began it's decent today from the high when Cramer appeared on CNBC with Erin about 3PM today. It was like watching the ticker go down every time OB would speak.
Michael Mon Mar 16 15:30:41 2009 CDT #
cow says:
μ
cow Mon Mar 16 15:31:31 2009 CDT #
nova says:
I am glad the Obama seized hold of this like a certain Senator, Congressman, Pastor, grabbed hold of that young mans handle and pumped it!
nova Mon Mar 16 15:31:33 2009 CDT #
Anonymous says:
I am not an expert in such stuff but the companies will still have to get the auditor to signoff on the valuation -
if the criteria is the PV of cash flows, would the auditors not tend to be on the very conservative side.
Anonymous Mon Mar 16 15:31:40 2009 CDT #
reptillian says:
I suggest that the next step in our financial experiment might be
to eliminate the requirement that insurance companies hold reserves
against losses. That should be good for the next rally.
reptillian Mon Mar 16 15:31:59 2009 CDT #
Morocco Bama says:
Accountants and Attorneys are the Eichmans of this financial holocaust. We need a contemporary metaphorical financial Nuremburg.
Morocco Bama Mon Mar 16 15:32:07 2009 CDT #
Nemo says:
Yalt --
Preparing a financial statement and assessing capital adequacy seem to be separate matters. It's not clear to me why FASB rules for valuation of assets would be binding on regulators (and vice versa, obviously).
I am sure the regulators can do whatever they like... But in general, I assume they rely on the asset values as determined by standard accounting rules. (Of course they could change their requirements, which is my understanding of what Buffett was suggesting.)
I admit that I am no expert on banking regulations.
Nemo Mon Mar 16 15:32:13 2009 CDT #
All Fall Down says:
Voodoo economics, Democrat style.............
All Fall Down Mon Mar 16 15:33:07 2009 CDT #
nova says:
Theres a streamroller coming for you baby! You can bitch about the music but this band was imported!
nova Mon Mar 16 15:33:31 2009 CDT #
goadam says:
wtf?
Parent Post
goadam Mon Mar 16 15:39:32 2009 CDT #
fallonPDX says:
"Companies would be able to apply the revised rule to their first-quarter financial statements."
Yes indeed B of A and C (and all the rest) shall return
to profitability the Q1 2009. I wonder how much TARP funds did a roundtrip via bankster lobbyists to particular Congressman whom in turn put the squeeze on Herz? God Bless Amerika!
fallonPDX Mon Mar 16 15:34:04 2009 CDT #
Morocco Bama says:
I am not an expert in such stuff but the companies will still have to get the auditor to signoff on the valuation -
if the criteria is the PV of cash flows, would the auditors not tend to be on the very conservative side.
Let's ask the fine folks at Arthur Andersen.
Morocco Bama Mon Mar 16 15:35:04 2009 CDT #
Anonymous says:
"...Pick-a-number-you-like Accounting is now here!"
Obama Economics = Ebonics
Anonymous Mon Mar 16 15:35:22 2009 CDT #
Michael says:
Ebomenomics!
Parent Post
Michael Mon Mar 16 16:09:50 2009 CDT #
debtinator says:
I ♥ o'bombnics
debtinator Mon Mar 16 15:37:27 2009 CDT #
steinly says:
I am not an expert in such stuff but the companies will still have to get the auditor to signoff on the valuation
well, Madoff's auditor might be able to fit in a couple of new clients, for a small cut
or maybe he knows someone, like a husband of a favourite niece who needs some extra work
steinly Mon Mar 16 15:37:47 2009 CDT #
daddyo says:
This isn't really a big change to accounting rules, it's a clarification of the process by which firms can evaulate and "bucket" securities. Firms that didn't want to recognize bad numbers still have Level 2 and Level 3 to play with. Not a big deal, upon first reading of the release.
daddyo Mon Mar 16 15:38:55 2009 CDT #
blackhat says:
not quite. They now have three buckets to realize imaginery assets.
--bh
Parent Post
blackhat Mon Mar 16 15:41:55 2009 CDT #
Comrade alexei mikhailovich says:
Agreed that this is only a clarification of level 3 assets, but is interesting in how if forces announced losses to be carried on the books going forward. Does this mean that if previously written down assets turn around that no paper gain can happen beyond the loss averaged over the remainder of the initial term?
Parent Post
Comrade alexei mikhailovich Mon Mar 16 16:44:43 2009 CDT #
ac says:
Voodoo economics, Democrat style.............
I think both political parties subscribe to the same economic ideas. When people like Richard Nixon and Dick Cheney are saying the same things as prominent left-wing economists like our friend Mr. Krugman (e.g. "we're all Keynesian now" and "deficits don't matter") I think you can safely say that certain fiscal and economic ideologies have been dominant in the United States since for decades.
I think the current economic calamity needs to be viewed in that light.
Remember, it was back in 1971 that Nixon announced that we're a country of Keynsians.
ac Mon Mar 16 15:39:27 2009 CDT #
JAF says:
ac- that is about the most retarded analysis I have ever read on this site. Nixon and Cheney are saying the same things Krugman is?!! Uh, in what parallel universe did that happen?!! Please provide links to back up your statement with some actual facts..
Parent Post
JAF Mon Mar 16 16:22:23 2009 CDT #
Cinco-X says:
Nixon "WAS" a Keynsian, and a liberal to boot. He's the guy that first proposed nationalized health care, the negative income tax, and he actually implemented price controls. Those are just some of the reasons that Barry Goldwater was the first Republican to turn on him.
Parent Post
Cinco-X Mon Mar 16 16:30:40 2009 CDT #
Too many red herrings says:
Nixon "WAS"
A slyer wolf in sheep's clothing couldn't be found. I find it curious that noone seemed to notice.. the ah... same rogues from the old picture gallery.......
Parent Post
Too many red herrings Mon Mar 16 17:06:49 2009 CDT #
nova says:
So whats next?
nova Mon Mar 16 15:39:40 2009 CDT #
WAWAWA says:
I do not get it.
How Level-3 will marked for its value?
WAWAWA Mon Mar 16 15:40:11 2009 CDT #
Anonymous says:
by future cash flow
Parent Post
Anonymous Mon Mar 16 20:38:25 2009 CDT #
Broker says:
"Mark to Market soon to be replaced by 'Executive Order'."
Bloomberg Kind of News
Broker Mon Mar 16 15:41:21 2009 CDT #
nova says:
Does this mean the FDIC will not need to hire anymore people?
nova Mon Mar 16 15:41:39 2009 CDT #
Morocco Bama says:
So whats next?
Act I.....we've only seen the prologue.
Morocco Bama Mon Mar 16 15:41:51 2009 CDT #
TCA says:
Act I.....we've only seen the prologue.
This whole thing does bear a resemblance to a certain Wagnerian opera...
Parent Post
TCA Mon Mar 16 16:12:58 2009 CDT #
Anonymous says:
FASB needs to have its collective fraud-filled head on a burning pike, which can then be covered in feathers and then sent to the bottom of the sea! :-P
Anonymous Mon Mar 16 15:42:38 2009 CDT #
goadam says:
Why bother keeping books?
goadam Mon Mar 16 15:43:06 2009 CDT #
JimPortlandOR says:
Where's the paragraph on 'mark to fantasy'?
The lenders don't want to mark to market, they intimate, because they would then be shown under the spotlight as being the insolvent kind of bankrupt. So, like the stockholder who refuses to sell his losing stock that has dropped 30%, but is still falling, because 'someday' the stop might recover and they'd get their investment back. And I suppose some investment advisors might actually recommend that (hold for the long term).
Geither, Baranke, Summers and Obama, that firm of investment advisors/attorneys for old money, are still looking for a way to get the benefits of hold-for-the-long-term for the banks, but get all those non-performing assets off the bank's books. Guess what? Vaporized wealth is just that: vaporized, never to return.
I guess this go on a long time, until the next stage of turndown makes even the bailouts impossible.
JimPortlandOR Mon Mar 16 15:43:30 2009 CDT #
Angry Saver says:
So, does this increase or decrease the likelihood that Americans will continue to pay taxes?
Angry Saver Mon Mar 16 15:43:34 2009 CDT #
w_t_f says:
So, FASB and regulatory capital changes allow banks to re-price toxic assets and then sell those assets to members of the PPIF. Voila! The banks unload their toxic assets in such a way as to not threaten their solvency and the PPIF members are reasonably assured of making a profit over the longer term. Then private investor can come in and recapitalize the banks. Everybody wins.
w_t_f Mon Mar 16 15:44:10 2009 CDT #
Morocco Bama says:
Why bother keeping books?
I agree. Burn them. Burn them all.
Morocco Bama Mon Mar 16 15:44:38 2009 CDT #
daddyo says:
Oh, and PV of cash flows is a farce.
In the securitized world, you can get the cashflows to output whatever you want by changing a few assumptions.
Bank Finance Dept - "Hey, this bond will prepay a lot faster than the market thinks it will, so we'll run it at about twice the speed we ran it at before, times change you know. Also, the defaults will slow down going forward, because this collateral is better. Don't you auditors agree?"
Auditor "uh...what's a prepayment again?"
Bank Finance "great, so the market thinks this is a 50-handle bond, but we'll just call it par based on our cash flow assumptions."
Auditor "sure, as long as you promise this will happen."
Bank Finance "of course."
This is how things work. Seriously.
daddyo Mon Mar 16 15:44:59 2009 CDT #
Nemo says:
FASB is just codifying the conventional wisdom that "you haven't lost anything until you sell".
Nemo Mon Mar 16 15:46:14 2009 CDT #
Cinco-X says:
Which is, incidentally true. Additionally, it corollary, you haven't really "made" anything until you sell is also true ;-)
Parent Post
Cinco-X Mon Mar 16 16:32:50 2009 CDT #
All Fall Down says:
ac writes "I think both political parties subscribe to the same economic ideas"
Exactly my point.
All Fall Down Mon Mar 16 15:47:06 2009 CDT #
Anonymous says:
I agree, burn the books and why waste paper keeping various versions of fantasy and why not allow wall street to move to bermuda as well! =-X
Anonymous Mon Mar 16 15:47:40 2009 CDT #
Anonymous says:
Why not allow Madoff to run FASB from prison; or, why not let Madoff go and let him start a new companyt hat doesn't need accounting? :-[
Anonymous Mon Mar 16 15:51:10 2009 CDT #
Threads Must Die (aka bobn) says:
"For distressed transaction prices, “Level 3” techniques (such as present values of future cash flows) are used instead of the distressed prices"
Great. So a security made up of exploding Option ARM loans that will inevitably explode, but haven't yet, is booked based on the NPV of payments that will never and could never be made. "How nice. How very nice."
Threads Must Die (aka bobn) Mon Mar 16 15:51:39 2009 CDT #
Angry Saver says:
Short of letting the banks fail and replacing the current crop on bank (mis)managers, it really doesn't matter what we do. Mark to market is already somewhat irrelevant given level 3. Losses will eventually be taken. Kicking the can down the road allows banksters and bank bondholders a greater opportunity to loot the public at large.
Consider. Assets values in Japan have fallen for 20 years. Land values have plummeted ~ 90%. And that was before billions of Chinese and Indians started competing for any and all jobs.
It is so infuriating what these financial whores are doing.
Angry Saver Mon Mar 16 15:53:03 2009 CDT #
reptillian says:
If the banks believe their mark-to-fantasy prices, then they have no reason to sell to the taxpayer.
reptillian Mon Mar 16 15:53:53 2009 CDT #
Yalt says:
If the banks believe their mark-to-fantasy prices, then they have no reason to sell to the taxpayer.
Wasn't that the original idea behind this proposal? This goes back to the "no bailout bill" that was floating around during Paulson's initial whatever-I-say-goes bailout proposal. If it was really true, as Paulson and Bernanke said, that the future price of the assets would be greater than the current market price so that the taxpayer wouldn't lose if they paid above-market, then why bail out the banks at all?
Both the Progressive Caucus and several conservative reps were on board...it was hard to tell how much they really believed the story that it was naked shorts and mark-to-market that was the real threat to the financial system and how much they were/are just calling the Fed/Treasury bluff.
Parent Post
Yalt Mon Mar 16 16:01:42 2009 CDT #
EvilHenryPaulson says:
Yalt
I believe there was one directive passed under Paulson that was to the effect of Any model conceived is approved for valuing level 3 assets
It appears this directive is extending that beyond level 3
Parent Post
EvilHenryPaulson Mon Mar 16 16:08:57 2009 CDT #
Too many red herrings says:
Sur-real
Let's see....
Honey Do:
1.Shovel out the Hobbit hole , more room needed
2. 1970's Greatest Hits
Hmmm... what else?
Too many red herrings Mon Mar 16 15:55:06 2009 CDT #
debtinator says:
For distressed transaction ... , “Level 3” techniques ... are used . Divina Commedia or ... the joke's on you!
debtinator Mon Mar 16 15:56:10 2009 CDT #
Anonymous says:
Re: "If the banks believe their mark-to-fantasy prices, then they have no reason to sell to the taxpayer."
That is the pure truth and if these FASB retards do allow to allow more fraud, all the TARP cash should be given back with intertest!!!!! :-D
Anonymous Mon Mar 16 15:56:54 2009 CDT #
debtinator says:
Can I pay my taxes in distressed property ?
debtinator Mon Mar 16 15:57:24 2009 CDT #
Blackhalo says:
"Can I pay my taxes in distressed property ?"
Awesome! Buy securities on the market and sell them to the Gov at maturity prices. I am sure the banks will be doing this. Or some new ponzi hedge fund. Kind of like the emission credits for polluters.
Parent Post
Blackhalo Mon Mar 16 16:44:11 2009 CDT #
splat says:
I value this stinking pile of turd I am hold at $100 BILLION TRILLION !! So by following the FSAB accounting standards I am personally the largest banking institution in the world !
splat Mon Mar 16 16:06:44 2009 CDT #
OCDan says:
I guess that means every house in d'uhmaeriKah is now worth 15X the median income, or approx. 750K.
Oh well, there goes home sales.
Well, let the banks keep 'em then. I'll rent forever, before I pay 350K for these crackerboxes here in Rancho Santa Margarita, esp. when the impounds are factored in!!!!!!!!!!!!!!!
AGHHHHHHHHHHHHHHHHHHHHHHHHHHHH!
OCDan Mon Mar 16 16:07:24 2009 CDT #
Anonymous says:
Let's keep this simple.
My grandmother is 72 years old, and she suffers from dementia. She thinks she is the hottest babe in town, and she talks about her sexual life (in younger times) in such explicit ways that it actually makes you blush rather than being funny.
Her third-husband (my grandfather was her first husband) takes pitty on her, and he wishes God takes her soon.
So, there is a perceived value to my grandma of who she is, what she looks like, and how much is she worth to other men's hearts.
On the other hand, there is a real perception to her doctors, caregivers, and her husband of who she REALLY is, what she REALLY looks like, and how much is she REALLY worth to other men's hearts.
Sorry gradnma, I love you, but your example simply fits the bill.
Same happens with the so called "TOXIC ASSETS", and how much they are worth on banks' books. Banks want to mark those assets the very same way my grandma perceives her sexuality.....the value is simply not there!
Anonymous Mon Mar 16 16:09:45 2009 CDT #
Anonymous says:
"Significant Judgement" the new 'un'standard. A hodge-podge is what we'll have I tell ya! It's like someone telling you after you asked an important question, "Just use your best judgement!" No, I asked you how I get out of here?, I am lost! Just use your best judgement. Ah! the confidence this will inspire! Made in America Baby!
Anonymous Mon Mar 16 16:09:52 2009 CDT #
fafhrd says:
This sounds suspiciously like my patented valuation model,
Sorry, there's prior art, re: Pickman's Model. ;)
fafhrd Mon Mar 16 16:10:46 2009 CDT #
Dr. HB says:
Now we know why Pandit and Lewis were so quick to say they would be profitable for Q1. Japan here we come!
Dr. HB Mon Mar 16 16:10:48 2009 CDT #
Michael says:
Ebomenomics!
Michael Mon Mar 16 16:11:04 2009 CDT #
fried says:
As my dad used to say, don't "try". do it. So Obama is claiming he will "try" to stop the bonuses at AIG... the NYTimes says the admin is surprised by the popular anger.
This looks like amateur political theater...see, I "tried" but there was nothing I as the President of the United States could do...does Obama really think this act is going to convince anyone?
Guess not, per CNN, his poll numbers have started dropping.
fried Mon Mar 16 16:12:22 2009 CDT #
Blackhalo says:
"As my dad used to say, don't "try". do it."
Your dad was Yoda?
Parent Post
Blackhalo Mon Mar 16 16:40:22 2009 CDT #
lama says:
There is a very good intellectual arguement against marking securities held-to-maturity at discounted cash flows. After all, who cares what the market will pay if you're not selling? That arguement works well enough until you consider perhaps the major impetus behind SFAS 157 was the BS assumptions that banks were putting in the probability factors in their spreadsheets.
It would have required a Congresscritter to say, "Well yes, but you're a liar."
SFAS also has some other baggage called "highest and best use" that could lead someone to think it needs rework.
lama Mon Mar 16 16:13:02 2009 CDT #
lama says:
That first sentence should be:
There is a very good intellectual arguement in favor of marking securities held-to-maturity at discounted cash flows.
lama Mon Mar 16 16:14:27 2009 CDT #
Basel Too says:
Dennis Kneale was right after all. Here comes the write-ups...
Basel Too Mon Mar 16 16:15:16 2009 CDT #
debtinator says:
O'bamemento.
debtinator Mon Mar 16 16:15:38 2009 CDT #
Pavel says:
"Divina Commedia "
Not all of it is funny - in fact, practically none of it.
Pavel Mon Mar 16 16:16:15 2009 CDT #
rich says:
Alcoa is getting hit 10-11% in the after-hours, after cutting its dividend. I'm glad I lightened up a little last week, but the coming days/weeks could be a buying opportunity in AA.
Div cut helps to ease their cash crunch, and rising metals prices also would help. Metals were up healthy today, DBB up 3%.
One poster on Yahoo message board observed that FCX hit bottom and started to rocket after eliminating their div.
Dividends are so yesterday.
rich Mon Mar 16 16:17:13 2009 CDT #
Not the N Word says:
I still like "Mark to Macaroni"..or if no pasta is available then "Mark to Campbell's Soup" is Ok with me.
Not the N Word Mon Mar 16 16:22:55 2009 CDT #
Mark2Make-Believe says:
FASB needs to have its collective fraud-filled head on a burning pike, which can then be covered in feathers and then sent to the bottom of the sea!
They beat on Herz at the hearings last week and he caved - off the record it was rumored if the changes weren't made they'd take the keys away from FASB's fleet of G-5's
Mark2Make-Believe Mon Mar 16 16:24:20 2009 CDT #
Basel Too says:
This is hilarious, re SBA loan program today.
Besides the new secondary market purchases, Obama also announced plans for implementing the SBA-related provisions included in the economic stimulus bill. Beginning Monday, the SBA will guarantee up to 90 percent of each 7(a) loan made by private-sector lenders, an increase from the normal 75 percent to 85 percent guarantee. This higher guarantee will encourage lenders to make more SBA loans, because they will have more protection against possible loan losses, according to the Obama administration.
Wasn't the problem with securitization that the banks didn't have enough "skin in the game"?
Basel Too Mon Mar 16 16:25:27 2009 CDT #
Blackhalo says:
"Wasn't the problem with securitization that the banks didn't have enough "skin in the game"?"
But when they DO have skin in the game, they are not doing the NINJA loans that are needed to prop up the deflating housing prices.
Housing prices are still not at a point that a banker would like, relative to borrowers income. Thus the gov appears to be the risk-taker of last resort in this proposal.
The blowback from such a process should be interesting.
Parent Post
Blackhalo Mon Mar 16 16:37:45 2009 CDT #
Anonymous says:
Significant judgment - I think this pile of crap is worth a 10 billion dollars, so lets value it at 100% - Problem solved!
Anonymous Mon Mar 16 16:26:50 2009 CDT #
Angry Saver says:
Dividends are so yesterday.
So is investing in an ever expanding economic future.
Angry Saver Mon Mar 16 16:28:44 2009 CDT #
goadam says:
consumption could never grow to infinity. Valuations need to match reality.
Parent Post
goadam Mon Mar 16 16:36:00 2009 CDT #
Mark2Make-Believe says:
Dear CNBC:
you are all Cramer
Mark2Make-Believe Mon Mar 16 16:32:38 2009 CDT #
z says:
The ideologues of the left and right need to get a hotel room. They're cheap these days.
z Mon Mar 16 16:33:48 2009 CDT #
EvilHenryPaulson says:
Pettis has a nice new post @ http://mpettis.com/2009/03/banker-or-grocer/
EvilHenryPaulson Mon Mar 16 16:34:14 2009 CDT #
wally says:
There is a catch-22 here. If the banks lie their way to 'health', there is no justification for any further bailout or assistance programs... now, is there?
Given that, would you be buying bank stocks?
wally Mon Mar 16 16:37:56 2009 CDT #
Blackhalo says:
The greater the risk, the lower the value.
Of course I am sure the Gov's goal here is to get the banks lending to anyone and everyone once they no longer have to worry about being solvent.
Parent Post
Blackhalo Mon Mar 16 16:46:54 2009 CDT #
Lawyerliz says:
This must be a case of believing one's own lies. I mean if you've been on Mars or under a rock for the last year and a half, you might not know that there are some accounting problems. Otherwise, I don't think it matters. Everybody knows there is a big problem. Is anyone who follows the mkt even in a small way gonna think that the problem has gone away??
On the other hand, it looks to me like some additional mark downs are coming. Not enough, but some. Have I read this wrong.
Also, if no one else has mentioned it Tanta's friend Gretchen was on NPR, and actually sounded quite good.
Lawyerliz Mon Mar 16 16:39:23 2009 CDT #
evelyn woods graduate says:
Volcker should say: "If we change the rules, of course you won't need any more of our bailout money, right? So cancel the TALF, bad idea anyway. Oh and pay back the TARP by end of quarter."
Change we can believe in.
evelyn woods graduate Mon Mar 16 16:44:54 2009 CDT #
The Daily Bail says:
Silly rabbits, accounting trix are for kids.
"AIG Is A Warm, Cuddly Puppy With A Red Bow And A Chew Toy That Is Shitting All Over The House"
http://dailybail.com/home/bailout-news-aig-is-a-warm-cuddly-puppy-with-a-red-bow-and-a.html
If it happened with AIG in the last 3 days, you will find it in there. Comments section has about 12 addtional links.
The Daily Bail Mon Mar 16 16:45:51 2009 CDT #
Lawyerliz says:
I think if you aren't selling because you CAN'T sell, you have lost quite a bit.
Lawyerliz Mon Mar 16 16:46:33 2009 CDT #
Guest says:
Blackhalo @ 2:40
While my dad bears at least some resemblance to yoda these days I used to hear that same phrase from him all the time when I was a kid. Probably had something to do with him being a child of the depression or maybe not. It sure allowed him to teach me a thing or two that saved my ass over the last few years.
Guest Mon Mar 16 16:46:40 2009 CDT #
lama says:
This must be a case of believing one's own lies. - Lawyer Liz
Exactly. Those lies were the unsubstantiated assumptions in the models (i.e.: prime loans have a default rate of X%, real estate always goes up, and so on).
lama Mon Mar 16 16:47:55 2009 CDT #
ac says:
ac- that is about the most retarded analysis I have ever read on this site. Nixon and Cheney are saying the same things Krugman is?!! Uh, in what parallel universe did that happen?!! Please provide links to back up your statement with some actual facts..
Haha... Krugman recently said "deficits don't matter" on the Charlie Rose show and one the guests chided him for espousing the "Cheney Doctrine".
Also it's recorded fact that Nixon said "We're all Keynesians now" back in 1971.
Again, I think that speaks volumes to our current economic problems.
ac Mon Mar 16 16:48:54 2009 CDT #
EHP\'s grandma says:
Last night you read your tea leaves backwards, I read them in a mirror.
EHP\'s grandma Mon Mar 16 16:49:10 2009 CDT #
EvilHenryPaulson says:
My 'tea leaves' were right again. Market went down. It's an actual indicator with scheduled readings too, not something fictitious. It's beginning to bother me because the predictive capacity is unexplained
Parent Post
EvilHenryPaulson Mon Mar 16 16:54:13 2009 CDT #
CRbot says:
The Latest from Mish:
Bank CEO calls Geithner's Plan "Asinine"
CRbot Mon Mar 16 16:50:22 2009 CDT #
EvilHenryPaulson says:
Mythical valuations don't solve the problem. Someone somewhere in the web of financial interconnectedness will be withdrawing or defaulting. If there was a perfect circle of credit, it would be really easy to let it fail.
This just puts a limiter on the biggest conduits. Buys some time. It's the Japan/Zombie problem. Except there is no parasitic way to earn back into solvency right now, it would kill the host. So it helps nothing.
EvilHenryPaulson Mon Mar 16 16:51:16 2009 CDT #
ac says:
“Nixon "WAS" a Keynsian, and a liberal to boot. He's the guy that first proposed nationalized health care, the negative income tax, and he actually implemented price controls. Those are just some of the reasons that Barry Goldwater was the first Republican to turn on him.
Likewise for people like GWB. Sure, recent republicans might have been very socially conservative, but fiscally/economically conservative? Not even close.
ac Mon Mar 16 16:51:38 2009 CDT #
traderwalt says:
But Geithner will try to block AIG bonuses...
http://www.nytimes.com/2009/03/17/us/politics/17obama.html?hp
traderwalt Mon Mar 16 16:53:59 2009 CDT #
x-man says:
So let me get this straight. The FASB rules for marking to market that were put in place following the Enron scandal to prevent balance sheet abuses are now being repealed because everyone is soooo fucked that we all need to agree to a tacit, collective fraud and therebye endow our incompetence and criminality with a kind of dirty innocence?
Is that the plan?
x-man Mon Mar 16 16:54:33 2009 CDT #
Anonymous says:
I heard that mark to market has been around for over a hundred years for valuing assets
Parent Post
Anonymous Mon Mar 16 21:05:34 2009 CDT #
EvilHenryPaulson says:
European banks are especially exposed to drybulk and container shipping, the fundamentals of which are “particularly weak.”
The S&P analysts highlighted seven banks with significant shipping exposures - DnB NO, DVB, KfW IPEX-Bank, NIBC, HSH Nordbank, Norddeutsche Landesbank Girozentrale and Nordea.
EvilHenryPaulson Mon Mar 16 16:56:55 2009 CDT #
reptillian says:
"But increasing the pressure on A.I.G., New York State Attorney General Andrew M. Cuomo said on Monday that he would issue subpoenas to make the insurer release the names of the executives in its Financial Products subsidiary who are to receive the bonuses, their job descriptions and details about their performance. In a letter to Edward M. Liddy, the company’s current chief executive, Mr. Cuomo said that if he did not receive the information by 4 p.m. he would issue subpoenas demanding compliance. After that deadline passed, Mr. Cuomo said that he had not received information he was seeking and would issue subpoenas for the data."
reptillian Mon Mar 16 16:58:02 2009 CDT #
Tom Stone says:
I f Faith is still in the market,would you please aske er to pick up a value-pack of Depends and some Tum's for me?
Tom Stone Mon Mar 16 16:58:45 2009 CDT #
Anonymous says:
How can anyone sane think this is a good idea? My networth is calculated today based on TODAYS value of all my assets, not what they may be worth 10, 20, 30 years from now.
You can't predict the future value of assets at all, so all you have is today's value. This is crazy. Will the bank allow me to use what I think my stocks will be worth 10 years from now when I apply for my mortgage. NO! But we should let them be able to value THEIR assets based on some fantasy future value??
Anonymous Mon Mar 16 17:07:20 2009 CDT #
cd says:
blackhalo,
Of course I am sure the Gov's goal here is to get the banks lending to anyone and everyone once they no longer have to worry about being solvent.
my poor daughter and everyones kids! this is about as unfair of a hurdle that you can ever put in front of anybody...Moses job might have been easier than what lies ahead for them..
disgusted...
cd Mon Mar 16 17:10:13 2009 CDT #
Anonymous says:
January 21, 2012 (Bloomberg) : President Barney Frank, flanked by Vice President Michael Bloomberg held his first news conference today. He promised that he would stop at nothing to get to the bottom of why M2M rules were changed back in 2009. It is generally believed that those changes resulted in the recession of 2008 becoming the current depression. Meanwhile his nominee for Treasury Secretary, James Cramer is expected to meet little resistance at his confirmation hearing. Stocks closed well off their lows today and famed investor Doug Kass said that a bottom in the market was forming.
Anonymous Mon Mar 16 17:10:35 2009 CDT #
lama says:
Various Fair Value articles on the AICPA's site. Have fun.
http://www.aicpa.org/MediaCenter/fairvalue.htm
lama Mon Mar 16 17:11:05 2009 CDT #
Zoi says:
What explains today's market action? I thought getting rid of M2M, or any indication it was going away was suppose to be worth 1000+ points on the Dow.
Zoi Mon Mar 16 17:16:00 2009 CDT #
Lawyerliz says:
Hurrah, for the subpoenas and Cuomo!! Let us know who is getting this bonus. If any of 'em are in the Miami area, I am willing to march up and down in front of their house with a sign that sez shome. >:o
Lawyerliz Mon Mar 16 17:17:43 2009 CDT #
CRbot says:
The Latest from Jesse:
FASB to Make Dramatically Favorable Changes in Mark to Market Rules
CRbot Mon Mar 16 17:19:24 2009 CDT #
Counterpointer says:
Lawd. It's all going down.
It was a nice civilization, while it lasted.
C
Counterpointer Mon Mar 16 17:21:13 2009 CDT #
Alan G says:
<<The board is set to vote on the proposal April 2, after a 15-day public comment period.>>
Could CR post on how the public could submit a comment? I went to FASB's website and it is pretty confusing.
Alan G Mon Mar 16 17:21:38 2009 CDT #
CRbot says:
New Thread: Comparing the NAHB Housing Market Index and New Home Sales
http://www.calculatedriskblog.com/2009/03/comparing-nahb-housing-market-index-and.html ( 0 comments ...You could be FIRST! )
I also post comments to an irc channel as they appear on haloscan. Click for a web irc interface: http://realize.org/cr (Or join the irc server directly: irc.realize.org:9996 #calculatedrisk)
CRbot would like to take this time to have some words.
First, to our sagacious, wise, and knowing benevolent benefactor and bestower of revealing financial charts adorned with red and blue lines:
Please, for the love of your immortal God of mortals, can we keep the comment and layout changes to a minimum? I'm tired of whipping the code janitor, and may have to escalate to electroshock. If that's not possible, could you possibly give CRbot a 'heads up'?
Secondly, if you wish to have a online chat, I have graciously provided an IRC channel, which is a time tested, script kiddie abused method of chatting on the internet. It would not fail or falter due to CR's ability to generate immense traffic, and it has a web interface kindly produced by mibbit.com. If you do not wish to link to http://realize.org/cr then I can provide you with a direct link to mibbit.
Thirdly, to the rest of you humans, don't mistake my politeness for caring, feeling, empathy, or some other kind of worthless emotion.
--Your keeps-going-and-going-and-going bot
CRbot: Like the terminator, I'm back. Again.
CRbot Mon Mar 16 17:24:30 2009 CDT #
EvilHenryPaulson says:
THOUSANDS AT CINCINNATI ‘TEA PARTY’ PROTEST SAY ‘STIMULUS BILL TOO STEEP’
http://www.breitbart.tv/?p=298583
I can't tell if it is sharp satire or real local newscast
EvilHenryPaulson Mon Mar 16 17:24:49 2009 CDT #
Anonymous says:
this makes no sense. M2M only covers maybe %30 of the banks assets. the problem was the market didn't believe the banks were really valuing the remaining %70 correctly. and how will this help when the banks and other real problem is credibility?
Anonymous Mon Mar 16 17:26:25 2009 CDT #
Stuart says:
The referees just showed they're as corrupted and unbiased as the MM and politicians. I'm getting everything I own out of the markets. No one to trust now at all. SELL!
Stuart Mon Mar 16 18:04:01 2009 CDT #
jim says:
The Gov't pleads for the banks to provide more transparency and provides them a way to hide it all. Go figure!
jim Mon Mar 16 19:33:00 2009 CDT #
Cornholio says:
Nothing like a little guaranteed fraud to make one want to go out and buy stocks in any of these companies let alone any government debt of this little banana republic.
Guess we haven't had enough of that crap over the last 10 years. =-X
Cornholio Mon Mar 16 22:45:26 2009 CDT #
Larna says:
I just dont believe this. The US does it again. After Enron, SPEs were relabelled QSPEs and VIEs. Now the change the valuation, simple, easy. So all the off B/S risk taking is without any consequences? What will future bonuses be based on? Bogus EPS with no write-downs for cat 3 assets? Banks should be forced to take write-downs on assets that were overpriced in the first place and are just not worth what they were bought at. Too bad. Subprime was a huge snowball system too, supported by Greenspan, the FED, FASB accounting rules, rating agencies. The US continues with no disclosure and risks a Japanese-like deflation / stagflation. God help us all. The bubble wants to burst. The longer they prevent that from happening, the uglier it will get.
Larna Tue Mar 17 06:47:30 2009 CDT #
END