Mark to Market Once More 0
James Saft on Reuters (emphasis added):
“Adjusting” or suspending fair value accounting, even if you swear up and down that this time it’s even more fair will erode rather than build trust and repel rather than attract capital.
(snip)
The problem facing the banking industry is not just solvency on some accounting or regulatory basis, it is solvency on, for want of a better phrase, a solvency basis. Thus banks are unwilling to do business with one another and investors unwilling to lend banks money or invest in them. They do not reliably know who is bust and who is not.
Folks, underneath all the Wall Street double-speak and the complexities of double-entry bookkeeping, this stuff really isn’t rocket science.
The banks are like the guys who keep feeling that radiating pain in their chests and down their right arms.
They’re trying to force the doctor to diagnose it as heart burn, when it’s heart attack.
