Biotech Values

[medchal]

"...it will be decided in the same corrupt, crony-capitalist way by bought congressmen...." Please be at least a little serious. The problem has nothing to do with corruption, Congressmen, nor corrupt Congressmen. Most member of Congress can't even learn how to file their taxes on time, let alone learn the intricacies of accounting (which don't interest them anyway).

FASB is "reviewing" its standards and guidance. FASB is not about to do anything to demystify accounting (which should be one of the simplest occupations in the world--bookkeeping, really). It will not come up with better ways to value an unrated bond which hasn't traded in four years, was issued by a small municipality, has six year to run to maturity, and is backed by an unusual sinking fund. It will come up with more baloney "standards" and "guidance" which will require the employment of at least as many accountants as before (and preferably more).

Warren Buffett is a good man, but in political matters follows the Democratic line every time, so consulting him on matters like this is pretty silly.

Pretending that mark-to-market accounting has something to do with "safety", or the evaluation thereof, is a laugh. No illiquid asset can be properly evaluated as to "market value". What one ends up with is "mark-to-salvage-value" accounting.