jasonciment

What Happened to the Fed's $1.816 Trillion Lifeline?

it's more about regulatory rape than anything else. Sure the companies were greedy but the government created the carrot which was dangled before them. the mark to market rules should be modified. For credit purposes the assets should be marked down to market but not for GAAP purposes. this way, net income reflects a more accurate reality and in terms of borrowing money, the lenders would get an accurate read on a company's "net worth" at the time the loan is being made. Companies like AIG would not have gone under if they were able to just hold their assets. But now bec of mark to market RESERVE requirements, the government took them over. And now we'll see the mark to market rules relaxed just weeks after wiping out 80% of shareholder stakes. How fair is that. naked short selling comes in a close 3rd to killing market value. i love our government but sometimes a few individuals can steer it in a direction the populace never intended.