petyaczar

How the U.S. Banking System Was Madoffed by the FASB

Henari,

Mark to Market is the Primary culprit and the root cause of our financial crisis. Unless one considers the idiotic, ignorant, arrogant, and totally out of touch politicians on both sides of the aisle in the U.S. Congress as the root cause.

They changed the accounting system. It became a 3 inning game scored by ever changing an irrelevant rules that had nothing to do with anything.

IMO

How the U.S. Banking System Was Madoffed by the FASB

Sarbanes Oaxley begat Mark to Market in response to Enron.
The U.S. Congress begat Enron when they deregulated essential gas and electricity and opened it up to speculators.
The politicians are the handmaidens of FASB 157
The Politicians are the root cause of this accounting crisis (FASB 157) that created a financial panic and the subsequent credit squeeze.

At its core, Mark to Market requires someone who has no interest in selling a performing asset (A willing owner and jence an unwilling seller) to discount said asset to the point at which an unwilling disinterested party (buyer) MIGHT become interested.

THIS IS BEYOND STUPID.

Kill Mark to Market and FASB 157, drive a stake thru its heart, cut off its head,burn the corpus delecti.
The politicians have used Mark to Market to pull off a Coup de Tat and destroy the capitalist free market system.

The politicians are using this "crisis" to expand government power as they bring America into a socialist state.

Never allow politicians to mess with the accounting system, else before you know it 2+2 is redefined as equaling 1.3 - or some such.

Never confuse accounting with reality.

Solve the root cause of this problem and the economy will be restored as the financial system is restored and markets will soar as credit begins to flow when confidence in balance sheets is restored

1)Get rid of Sarbanes Oaxley = Mark to Market
2)Get rid of FASB 157
3)Reinstate Glass Steagall Act
4)Reinstate the uptick rule on short sales
5)Increase margin on commodity futures trading to 50%
6)Make it illegsal for politicians to mess with the accounting system.

IMO