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It's Time for the Fed to Get Serious - Barron's

There is an easirer way. Suspend or modify the FAS 157. This rule is designed by short sellers and their accounting cohorts under the guile of providing transparency to investors. This accounting rule ignores cash flows and rely on exit (liquidation) prices as the most accurate representation of fair value.

Banks have decimated as their portfolios are forced to use the latest liquidated prices. Even prices on the regulated exchanges at times can be manipulated or impacted by the changes in regulation.

The taxpayers keep having to come up with more money because of somebody are not doing their job.

Credit Crisis Watch: Are the Markets Thawing?

High yield spread is still high, because stocks can be manipulated and driven down to zero quickly by the use of CDO, CDS, futures, put options, short calls, ETF, leveraged ETF, naked short selling by market makers, naked short selling by "dark pools."

The market is structurally flawed and unstable!

The Fair Market Value accounting force lenders to be more conservative. Lending will suffer. The economy will stay weak. And the SEC will continue to not to protect the market and plan to keep the flawed and dangerous accounting rule. As a result, credit spreads will continue to stay high.