lavalyn

Nixing 'Mark to Market' Won't Solve the Problem

Look back six months ago to see what happens when firms don't mark to market (correctly). Einhorn made his now prophetic position that Lehman Brothers didn't mark to market correctly in Q1 2008. The mad rush down for them wasn't mark to market based, it was distrust of the balance sheet that got the vultures circling overhead.

When you have the public distrusting the balance sheet, no amount of mark to model numbers will help you. See also: Enron.