Dow Below 10,000

[Dissipate]

Originally posted by: LegendKiller
It was suggested to be suspended, if FASB didn't take action. However, as far as I can tell, it hasn't been suspended since FASB did clarify the rules. If you have evidence to the contrary I'd be interested.

Whether it has been suspended or not, the government isn't going to buy the banks' toxic assets at mark to market, otherwise there wouldn't be any point to the bailout. They would already be able to unload the assets at the fair market value.

This was already explained here.

 

[Michael]

LegendKiller,

I would take your resume pounding with more respect if you would get over your over inflated sense of the worth of your background and qualifications. You have a business degree, are a CFA and work in some sort of banking job? What is so special about that?

I have a business degree, am a CA, and am also a CFO (including having been a CFO of a public company and am currently on the BoD of a public company). You dismissed my background and experience in a previous thread but I have yet seen you give any details of your experience nor have you explained why it is so perfectly aligned with this current discussion.

In general, I tend to agree with your posts as there are a ton of clueless loons that post here that doesn't even have a good layman's grasp of financial concepts. However, you seem to be assuming that the gap between you and tem is the same between you and every other poster. You're dealing with experienced adults in many cases and you do not have more experience in many cases.

Michael

 

[First]

Originally posted by: Dissipate

It has to do with the fact that the money is extracted at a point of a gun. Those services are forced into existence, I have no say in receiving those services or not receiving them. It's been decided by the horde (i.e. people like you). The FDA is not a service btw, it is a detriment. The same with schools that produce the likes of brainwashed propagandists like yourself. Total detriment to society.

Well, if you can't actually explain why they're a detriment with specific examples and reasoned analysis, people will continue to take your posts with a grain of salt. To say that you have "no choice" in using public services is really quite an interesting statement, as you have yet to give any detailed response as to what alternative there would be to, for example, public roads, bridges, etc. To say people get "brainwashed" in school is quite an amazing statement. I wonder, have you actually ever graduated from a university?

Mark to market has been suspended. Or do you not understand your beloved bailout plan as much as you are leading on? Could you be talking out of your ass? No couldn't be....

Haha, do you have any concept of what mark-to-market is or why they are considering suspending it? Come on, you know you can't debate anyone here on that. Sorry bro, but much like in this thread where you ducked out of the conversation when you couldn't respond with any details whatsoever about why foreign countries would dump our T-bills, you're similarly not convincing anyone here you have the first clue what's going on. I've consistently maintained that the Fed has to offer a little bit higher than mark-to-market, but that it shouldn't be much over that value otherwise it significantly reduces the chance taxpayers recoup their investment.

 

[First]

Bottom line, in the case of these mortgage-backed securities, the panic over institutional failures caused there to be sales under duress, with someone taking a very low bid offered by "bottomfishers". Once that is done, all others in a thinly-traded market have to value their holdings at that low amount. Banks are reluctant to adjust their balance sheets that low, lest they not have the net capital required to sustain their operations.