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Originally posted by MatrixProphet
Just heard on the news: the cost of oil is plummeting!! Donald Trump was right on. It is the lowest price per barrel - in a long time.
Originally posted by pavil
reply to post by MatrixProphet
Whoever wins the Presidential election must feel like the Groom who marries sight unseen, then finds out he is married to a Ugly, 500 pound Bride who is already pregnant . Some big prize: being President during the deepest economic downturn since the 1930's. Somehow I don't think they will like it.
If I have responded to your post, I either, A. Liked what you had to say and wanted to let you know or, B. I think you have no clue what you're talking about.
Originally posted by Flash_dancer
Banks have been given 400 billion to lend out recently. Don't it beat all that they have frozen the credit markets? The 400 billion they were given to lend sits safely in their vaults.
The Congress should demand that the Securities and Exchange Commission suspend the mark-to-market accounting rule pending reevaluation of its destructive role in the current downward spiral. There is a grave danger the bailout itself may trigger further asset devaluation and actually worsen the liquidity crisis.
In accounting and finance, mark to market is the act of assigning a value to a position held in a financial instrument based on the current market price for the instrument or similar instruments. For example, the final value of a futures contract that expires in 9 months will not be known until it expires. If it is marked to market, for accounting purposes it is assigned the value that it would fetch in the open market currently.
"Suspend tomorrow morning the mark to market requirement. Replace it temporarily with a 3 year rolling average and you will overnight explode the amount liquidity on the street.
Companies will immediately have relief all across America. It will be a stunning affect and you will have bought plenty of time to now think through, in a better way, what was so badly designed by Sec'y Paulson, and that frankly could not be salvaged.
RICHMOND, Va., April 10 (Reuters) - Federal Reserve Chairman Ben Bernanke said on Thursday mark-to-market accounting has helped to destabilize markets for illiquid assets, but regulators need to be careful about any changes to the system.
"Suspend the mark to market immediately in the morning. Chairman Cox could open for the markets by announcing at 7 or 8 am that it had been suspended for the next couple of weeks. You would immediately have relief in all sorts of areas of the financial system involving hundreds of billions of dollar evaluations...
A potential re serge of several hundred billion dollars of liquidity just by having Chairman Cox and the Security & Exchange Comm. with the stroke of a pen - without any legislation."
"Mark-to-Market" Accounting and the Origins of the Financial Crisis: Mark-to-market accounting (also known as "fair value" accounting) means that companies must value the assets on their balance sheets based on the latest market indicators of the price that those assets could be sold for immediately. Under such a rule, declining housing prices don't just reduce the value of defaulting mortgages. They reduce the value of all mortgages and all mortgage-related securities because the housing collateral protecting them is worth less.