Roger Ehrenberg

7 Steps To Restore Functioning Markets

petyaczar, in a world where you have simple stocks and bonds, maybe one could handle the classic "Lower of Cost or Market" (LOCOM) accounting regime. The problem is that is not what we have today. There is a bunch of crappy, ultra-illiquid, difficult-to-analyze paper on bank and corporate balance sheets (not to mention trillions in opaque off-balance sheet obligations) that without additional transparency cannot and will not be funded. This is fact. Your comment is emotional and not rational. It was not mark-to-market accounting that sank the banks - it was poor risk management, financing policies and compensation regimes that sank them. Sorry, but it's true.