FASB vote

What do you guys think about the vote Thurs over M2M accounting? It seems that it would present a good potential short term investment, but long term???? Yikes

They will turn it over, it will please the markets..I hope they dont but I expect they will.

I think it will give the banks a much needed shot in the arm, and it might be good to ride them short term, but how the hell can we trust balance sheets after this?

The impairment model should be overturned . . . mark-to-market i feel should not.  Assisted on my company's comment letter last week . . . of course the higher ups think that something that is valued at 40 should be 60 or 70 and you take the liquidity factors out of the calc.  Yeah that is real transparent

Change in mark-to-market rules will make companies less transparent.  but no one cares. 

If someone is only willing to pay 40 cents on the dollar in a distressed market . . . than why should you be able to value it at 60?  The user of the financials wants to know how much you'd get on the open market for that asset backed turd.  Not how much you think you should get on some discounted cash flow model.  Sigh. 

VH2,

Yep, me saying I think it passes is a reflection of how I think things are run..including the FASB.

It should NOT be reversed, but I think for the wrong reasons it will be reversed.

 

has anyone with half a brain EVER trusted these weasels?  if bullshit was money, the banks would all be flush instead of

 I am befuddled on this issue.I do not think that it should be overturned, but think it will be, but I do have trouble thinking that M2M is the only "accurate" estimation.It has not really prevented anything from being cooked should the participants choose to cook the books.

imagine we put jeff skilling away for this not more than 6-7 years ago and now our government may mandate fantasy accounting

can i now borrow against my house's 2006 value?

So what does this mean-
Orderly Sale

Thats as subjective as Ive seen the FASB ever put something.

The new fair value rules are a joke.  Not saying the current rules work either in a distressed market . . . but the new rules are ridiculous.  How can you even compare companies anymore? 

Here is a good one which makes no sense either.  If you have an AFS security you only need to take credit impairment . . . if you have an HTM security you need to write it down to its fair value if OTTI exists

Agree VH.....but whatever, the market is low and we seem to be pulling out of this bear...I'm gonna jump on some beaten down bank stocks, and ride them to their BS Q1 results, then sell them off....ummm at least that seems like a good plan