Mark-to-market Change Is Nonevent For Stocks
Q: Mark-to-market change might be nonevent for stocks. With Thursday decision already baked in, enthusiasm might be short lived.. NEW YORK (MarketWatch) -- For weeks, investors have been expecting regulators to change accounting rules that would allow banks to recoup some losses already taken on illiquid mortgage assets, making Thursday's official decision by the Financial Accounting Standards Board almost a nonevent, analysts said.
A: "But if the new rules can allow them to price these assets higher, they won't have as much of an incentive to sell them and therefore it doesn't make complete sense with Geithner's plans," Fitzpatrick said That's exactly what I've been saying. The 2 contradict each other and simply don't make sense. Just another way to prop up markets. If they suspend M2M tomo, I will take out all of my money that is in FAZ and put it directly into BAC. If they chose to suspend it, then the banks will inadvertently become invincible. How will they possibly report bad earnings when they can pretty much make them up? Our nation will be crucified at the hands of these bankers if we increase the opacity on their balance sheets. Hell, I thought we were trying to make them more transparent according to Geithner and Bernanke!!!! I'm so confused....therefore I just bet against the banks. Unless I get burned of course... If they can make up prices, then PPIP is bound to fail. You can't have 2. You have to choose just one. I think PPIP is the bigger thing here, therefore, M2M will not change.