Department stores like Macy's and JC Penny show Retail prices on all their goods
Then they discount those prices heavily to get you to buy ON SALE
NOW comes the BANKS
All their assets are ON SALE and now they want to MARK THEM UP TO RETAIL
to make them look better
IS that CRAZY OR WHAT ?????? !!!!!!!!
more later
Jay
1 comment:
Jay,
Enron and Global (double) Crossing happened because companies were able to hide their losses from public scrutiny.
The subprime slime was hidden from public scrutiny in SIVs and kept off corporate balance sheets so that risk could not properly be assessed.
All this led to unprecedented opacity to the system.
Mark-to-Market is an attempt to require some honesty in public accountability to shareholders (and now to the public since we're bailing them out).
There are problems, like the one Manfred mentioned, that being this rule was put in place so the PTB could take down the system when they want. Plausible? It's a question in contention.
So is Mark-to-Market crazy? Is corporate honesty crazy? Or is the old way of letting corporations hide their losses from public view crazy?
I've got a headache.
Post a Comment