Mark To Market
To many people accounting is an esoteric subject and beyond their comprehension, or they just do not want to be bothered. However, the Financial Accounting Services Board (FSAB) has rules that are followed in order for our financial markets to make sense. Recently, that Board has stated that "mark to market" does not require strict adherence in volatile markets. This will affect the financial markets enormously.
Also, the "uptick rule" is to be reinstated. This rule was in effect since 1934 and was recently removed by congressman Chris Dodd. This disregard of the uptick rule was a factor in the rapid decline of our markets for the last two years.
If you are keeping track of the financial markets you will have noticed that there has been a turn around this past week. That turn around has been influenced by these two rules. It indicates that the bottom has been seen and the market is ready to return to sanity.
posted by Marcel at
7:35 AM
4 Comments:
Most of this recession can be attributed directly to stupid, ignorant rules and regulations passed by congress led by Dodd, Frank and Rangel but no one is demanding they give up their massive campaign contributions from multiple industries being "bailed-out". Recall that this recession began after liberal Democrats took over both houses of congress in 2006. The six prior years were prosperous.
By
John Beauregard, at 8:07 PM
Wow, now that I am taking Introductory Financial Accounting, I actually understand some of this stuff!
By
Sean M., at 8:43 PM
Sean, You are welcome to join the "real" world anytime.
By
Marcel, at 4:01 PM
Thank you for your invitation, Grandpa, I graciously accept.
By
Sean M., at 9:13 PM
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