Remember what I said earlier about Mark to Market accounting changes? Well it appears the U.S. monkey brains are about to have a go at it. The basis of their thinking can be summarized by saying they are going to let the investment industry have it's way and just make shit up.
Although the financial and government gurus would have you believe this is complicated and love to use big words and ass backwards phrases to make it appear complicated, it isn't. They are just doing that to confuse you and make you fuck off. Remember Obama's great indignation about leveraging 30 times in one of his speeches? Heh...
Something is only worth what someone else is willing to pay for it. If no one wants to buy it, it's worth what they are willing to pay, right? That is nothing. So the essence of the changes the monkeys want to make will allow industries to set a value on these otherwise worthless assets and allow them to represent that value on their books, thus falsely representing the true overall value of the company. In a worst case scenario, a company could have many times more worthless assets on it's books than those with value making the company very risky if not insolvent in real terms, yet still able to represent itself as a viable entity to investors and stock market purchasers. Neat wot?
Reminds me of a line from an old song; Something for nothing and your chics for free...
Oh, and wasn't it just a week or so back that Bernanke said no to this? Next thing you know, he will be saying, "My friends, trust me"..
Thanks for the link Charles. Because of you, I'm having Pepto Bismal for breakfast this morning, instead of Crumpets and Spam.... lol