Comments on: Mark-to-Market: A Rule That Begs to Be Broken http://www.investmentu.com/2009/March/mark-to-market.html Investment Advice and Investment Research with a Contrarian Point of View Thu, 24 May 2012 23:36:56 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: glenn austin http://www.investmentu.com/2009/March/mark-to-market.html#comment-5135 glenn austin Wed, 01 Apr 2009 13:21:25 +0000 http://www.investmentu.com/IUEL/2009/March/mark-to-market-a-rule-that-begs-to-be-broken.html#comment-5135 iam a new comer to this market and i do not understand the up tick rule or the mark ti market rule ,please explane it so people like me canget into the fight. thank you glenn austin iam a new comer to this market and i do not understand the up tick rule or the mark ti market rule ,please explane it so people like me canget into the fight. thank you
glenn austin

]]> By: Joe http://www.investmentu.com/2009/March/mark-to-market.html#comment-3730 Joe Tue, 17 Mar 2009 16:42:07 +0000 http://www.investmentu.com/IUEL/2009/March/mark-to-market-a-rule-that-begs-to-be-broken.html#comment-3730 Someone please help a newcomer out here...To me M2M doesn't seem like the problem. In reality (and the present time being the only true reality there is) the true value of anything is what it can be sold for right now, or at least today. The reason being is that 1)the economic climate of yesterday is history (ie the boat has left the dock), and 2)the economic climate of tommorrow is always a mystery, which is why I've never played the markets. So to me, the concept of M2M is a good one. To me the crisis has been created totally by a misrepresentation of what the M2M values actually were at the time, either by not taking into account the risk involved with loans made to people who more than likely wouldn't be able to sustain their mortgages, or by over-estimating the then current value of the mortgages by marking them to what they speculated their value would be in the future...which is not marking to current market value, but marking to future market value. To me, it's pretty obvious. You can only lie so long, but the truth eventually will come out. It's so unfair that so many have been hurt, and those who will be hurt in the future that had absolutely nothing to do with this nasty little game. Another failure of government to do its job, which is to govern in order to protect innocent people from criminals. The question is, are the people in government so stupid, or are they so criminal. Someone please help a newcomer out here…To me M2M doesn’t seem like the problem. In reality (and the present time being the only true reality there is) the true value of anything is what it can be sold for right now, or at least today. The reason being is that 1)the economic climate of yesterday is history (ie the boat has left the dock), and 2)the economic climate of tommorrow is always a mystery, which is why I’ve never played the markets. So to me, the concept of M2M is a good one. To me the crisis has been created totally by a misrepresentation of what the M2M values actually were at the time, either by not taking into account the risk involved with loans made to people who more than likely wouldn’t be able to sustain their mortgages, or by over-estimating the then current value of the mortgages by marking them to what they speculated their value would be in the future…which is not marking to current market value, but marking to future market value. To me, it’s pretty obvious. You can only lie so long, but the truth eventually will come out. It’s so unfair that so many have been hurt, and those who will be hurt in the future that had absolutely nothing to do with this nasty little game. Another failure of government to do its job, which is to govern in order to protect innocent people from criminals. The question is, are the people in government so stupid, or are they so criminal.

]]> By: Joe http://www.investmentu.com/2009/March/mark-to-market.html#comment-3724 Joe Tue, 17 Mar 2009 16:10:21 +0000 http://www.investmentu.com/IUEL/2009/March/mark-to-market-a-rule-that-begs-to-be-broken.html#comment-3724 I'm a newcomer, so I'm somewhat confused. If the M2M rule wasn't in effect, then what would we be marking to? Would it be the original value? Would it be the original value plus some percent to account for inflation/deflation? If so, inflation/deflation of what? Certainly not the market to which the investment belongs, correct? Otherwise, that would be mark to market, right? I’m a newcomer, so I’m somewhat confused. If the M2M rule wasn’t in effect, then what would we be marking to? Would it be the original value? Would it be the original value plus some percent to account for inflation/deflation? If so, inflation/deflation of what? Certainly not the market to which the investment belongs, correct? Otherwise, that would be mark to market, right?

]]> By: Charles DiBenedetto http://www.investmentu.com/2009/March/mark-to-market.html#comment-3617 Charles DiBenedetto Sun, 15 Mar 2009 22:47:15 +0000 http://www.investmentu.com/IUEL/2009/March/mark-to-market-a-rule-that-begs-to-be-broken.html#comment-3617 For the last two years I have repeatedly called the SEC asking them to reinstate the uptick rule, and t0 stop Mark to Market which were destroying the financial stocks. I further asked them to better regulATE SHORT SELLING HEDGE fUNDS AS THEY WERE DESTROYING THE FINANCIALS WITH THEIR NAKED SHORT SELLING, and spreading of untrue rumors. The SEC gave me supportive lip service and hope of corrective action, but they did absolutely nothing. COX of the SEC was either the world's greatest stubborn idiot, or he was completely corrupt as he helped short sellers to destroy the markets; and thereby wreck the economies of the world. The SEC was set up to protect investors from unfair trading practices. SS hedge funds have been manipulating the markets, and the SEC has done nothing to stop them, and by eliminating the uptick rule they further helped them to destroy millions of investors and bring the world to crisis mode. For the last two years I have repeatedly called the SEC asking them to reinstate the uptick rule, and t0 stop Mark to Market which were destroying the financial stocks. I further asked them to better regulATE SHORT SELLING HEDGE fUNDS AS THEY WERE DESTROYING THE FINANCIALS WITH THEIR NAKED SHORT SELLING, and spreading of untrue rumors. The SEC gave me supportive lip service and hope of corrective action, but they did absolutely nothing. COX of the SEC was either the world’s greatest stubborn idiot, or he was completely corrupt as he helped short sellers to destroy the markets; and thereby wreck the economies of the world. The SEC was set up to protect investors from unfair trading practices. SS hedge funds have been manipulating the markets, and the SEC has done nothing to stop them, and by eliminating the uptick rule they further helped them to destroy millions of investors and bring the world to crisis mode.

]]> By: John Borders http://www.investmentu.com/2009/March/mark-to-market.html#comment-3425 John Borders Fri, 13 Mar 2009 04:41:01 +0000 http://www.investmentu.com/IUEL/2009/March/mark-to-market-a-rule-that-begs-to-be-broken.html#comment-3425 How do you reconcile your conflict of interest as an investment advisor user of financial information with what is best for the public interest in advising what accounting rules should be. It seems you are one among many who provide differeing special interest opinions as to what accounting rules should be. Perhaps the Government shall listen to many comments in making their deliberation. However, I believe these rules should be left to regulatory bodies other than the SEC and the accounting industry: These are the bodies that must develop and work with accounting and auditing rules governing regulated industries. The Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Bank all have outstandingly enlightened enforcement records related to accounting and enforcement records. It is dreadfully unfortunate that these regulatory/supervisory bodies have not ever had the authority to extend their supervisory oversight over the investment banking community members. How do you reconcile your conflict of interest as an investment advisor user of financial information with what is best for the public interest in advising what accounting rules should be. It seems you are one among many who provide differeing special interest opinions as to what accounting rules should be. Perhaps the Government shall listen to many comments in making their deliberation. However, I believe these rules should be left to regulatory bodies other than the SEC and the accounting industry: These are the bodies that must develop and work with accounting and auditing rules governing regulated industries. The Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Bank all have outstandingly enlightened enforcement records related to accounting and enforcement records. It is dreadfully unfortunate that these regulatory/supervisory bodies have not ever had the authority to extend their supervisory oversight over the investment banking community members.

]]> By: Ralph http://www.investmentu.com/2009/March/mark-to-market.html#comment-3423 Ralph Fri, 13 Mar 2009 03:52:51 +0000 http://www.investmentu.com/IUEL/2009/March/mark-to-market-a-rule-that-begs-to-be-broken.html#comment-3423 Mr. Basenese is one among very many who have been able to show exactly why the mark-to-market rule should be suspended. In fact, SEC Cox could have suspended it in August of last year during the Bush Admin., and in time to prevent much of the damage it has done. Why didn't he? Did President Bush say no? If so, tell us he said no, and why? Why haven't we heard from the horses mouth why, against the best of advice, the rule has remained in place? The short term goal of transparency is hardly worth the long term consequence of global disaster, which no one can deny. So either the holders of the reins of power in this and the last administrations don't really know what is going on, or they have another agenda, or what Mr. Basenese and the others have said is simply not true. We, on the other hand, have a right to know where the truth lies. Let's get to the heart of the problem! Let's call a spade a spade. Mr. Basenese is one among very many who have been able to show exactly why the mark-to-market rule should be suspended. In fact, SEC Cox could have suspended it in August of last year during the Bush Admin., and in time to prevent much of the damage it has done. Why didn’t he? Did President Bush say no? If so, tell us he said no, and why? Why haven’t we heard from the horses mouth why, against the best of advice, the rule has remained in place? The short term goal of transparency is hardly worth the long term consequence of global disaster, which no one can deny. So either the holders of the reins of power in this and the last administrations don’t really know what is going on, or they have another agenda, or what Mr. Basenese and the others have said is simply not true. We, on the other hand, have a right to know where the truth lies. Let’s get to the heart of the problem! Let’s call a spade a spade.

]]> By: Andrew Janisz http://www.investmentu.com/2009/March/mark-to-market.html#comment-3416 Andrew Janisz Fri, 13 Mar 2009 01:47:06 +0000 http://www.investmentu.com/IUEL/2009/March/mark-to-market-a-rule-that-begs-to-be-broken.html#comment-3416 Hi there. My previous formula should be modified to read; M(t) = M(t-1)*( 1 + L(t-1) * (P(t)- P(t-1))/P(t-1)) Hi there. My previous formula should be modified to read;

M(t) = M(t-1)*( 1 + L(t-1) * (P(t)- P(t-1))/P(t-1))

]]> By: Ruby Lugheed Yawney http://www.investmentu.com/2009/March/mark-to-market.html#comment-3377 Ruby Lugheed Yawney Thu, 12 Mar 2009 20:42:55 +0000 http://www.investmentu.com/IUEL/2009/March/mark-to-market-a-rule-that-begs-to-be-broken.html#comment-3377 I agree completely with the article! AS a Chartered Accountant and one that used to audit financial institutions it is complete ludicacy! This is an age old debate, even from the days I was in University and one meant to be left for debating, not affecting capital. Disclose, sure, the more information (with integrity is the key) the better, but the ones who came up with this will certainly be looked at in hindsight as adding to the crisis. I agree completely with the article! AS a Chartered Accountant and one that used to audit financial institutions it is complete ludicacy! This is an age old debate, even from the days I was in University and one meant to be left for debating, not affecting capital. Disclose, sure, the more information (with integrity is the key) the better, but the ones who came up with this will certainly be looked at in hindsight as adding to the crisis.

]]> By: Dave http://www.investmentu.com/2009/March/mark-to-market.html#comment-3375 Dave Thu, 12 Mar 2009 20:24:46 +0000 http://www.investmentu.com/IUEL/2009/March/mark-to-market-a-rule-that-begs-to-be-broken.html#comment-3375 Excellent explanation of the stupidity of bean counter "accounting rules." It is interesting at how pig headed the SEC lawyers are in refusing to consider suspending a rule that has almost distroyed the banking industry. Excellent explanation of the stupidity of bean counter “accounting rules.” It is interesting at how pig headed the SEC lawyers are in refusing to consider suspending a rule that has almost distroyed the banking industry.

]]> By: Tom http://www.investmentu.com/2009/March/mark-to-market.html#comment-3366 Tom Thu, 12 Mar 2009 18:42:20 +0000 http://www.investmentu.com/IUEL/2009/March/mark-to-market-a-rule-that-begs-to-be-broken.html#comment-3366 These are the topics the Sunday shows,Face the Nation, Meet the Press and George S. should be giving the people so we could be educated on things like this.PRO and CON. I would guess only about 1 or 2 percent of our Washington reps. could explain this or understand it. These are the topics the Sunday shows,Face the Nation, Meet the Press and George S. should be giving the people so we could be educated on things like this.PRO and CON. I would guess only about 1 or 2 percent of our Washington reps. could explain this or understand it.

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