WEALTH UNIVERSITY

[abnpayne]

MTM Suspension = Legalized Enron style bookkeeping

I am a novice investor and just read a few MTM pieces on both perspectives after watching the video. My beliefs follow the plain sense explanation of:
Don't Blame Mark-to-Market for Banks' Problems: Jonathan Weil March 2008
http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_weil&sid=aJFrPa3rqhHw

I see the benefit of suspension, simply hiding the ACTUAL LOSSES with inflated numbers that do not reflect today's market worth. This practice would ignore the principle of a market correction after a huge economic boom halts. It's like ignoring the man behind the curtain in Oz.

Speculation and ignorance is the cause of this mess and I know the public/investors are being bombarded with staggering figures that continue the spiral, but using sugarcoated valuations is not the answer that will stop job losses or pay the salary of current employees. It would only further extend the lines of credit to failing companies so they can swim harder against the flow pulling them down the drain. MTM keeps the free market, crummy a HUGE value for long term investors.

The ONLY Washington Action that could actually put people work and possibly in some fashion steady the market failure with be the reinstatement of the Civilian Conservation Corps to do all these newly funded private bid stimulus projects. http://en.wikipedia.org/wiki/Civilian_Conservation_Corps

On the news this evening there were actually discussions on how to keep people that could afford to pay their mortgage from bilking the new mortgage assistance plan. You can simply not pay for 3 months, use the $ for a new TV, then get assistance.