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Key Accounting Rules Were Violated Recently

While studying accounting in school (some decades ago), one of the principles of accounting that was taught was:

"Anticipate no gains and provide for all possible losses."

That means that no revenues should be booked until actually earned.

But too many financial models wrote up assets by "capitalizing" future earnings.

This also argues for "mark to market" accounting, for losses.

Holders of securities for sale OUGHT to carry their holdings at market prices.

"Lower of cost or market" is a time honored method of valuing the inventory of industrial companies. It should hold just as much for the "inventory" of financial instituations,

And even holders to maturity should take "partial," perhaps 50%. losses on the theory that the market may be onto something, even if it overshot.