Clown-Free Zone... sorry, no clowns allowed Message Board

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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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From: NucTrader	11/14/2007 9:23:24 AM
	of 436258

Business as usual. This is from FASB 157, due to be implemented Nov. 15, a concoction of the big 4 accounting firms and the SEC... "The notion of unobservable inputs is intended to allow for situations in which there is little, if any, market activity for the asset or liability at the measurement date. In those situations, the reporting entity need not undertake all possible efforts to obtain information about market participant assumptions. However, the reporting entity must not ignore information about market participant assumptions that is reasonably available without undue cost and effort." Most, if not all of the Level II and Level III toxic waste will not come to light, unless some accountant with cajones the size of basketballs says, "Hey, I see where you tried to sell this Level III asset and there was an offer of .20 on the dollar. So that's the value you gotta take." It'll never happen. No wonder GS was so confident that there'd be no "significant" write-downs. So I see Level II and Level III affecting these brokers and banks only to the extent it impairs their ability to do "conventional" business. Of course, being unable to move this crap, it will affect their profitability.

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