SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Apple Inc.
AAPL 278.28+0.1%Dec 12 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Keith Feral who wrote (78015)9/17/2008 11:25:35 PM
From: HerbVic  Read Replies (2) of 213176
 
Pretty good synopsis, Keith. I really don't buy the conspiracy part, but the facts are what they are.

The root of all evil here is the change in the so called fair value rule concerning FAS 157. The intention was honest, that of providing a more accurate valuation of assets being carried on the books of commercial and investment banks. However, the effect has been nothing short of a disaster!

Long term investments do not trade with the same verve as overnight funds, stocks and bonds, and they should not be given the same valuation treatment. If we are to have a financial market at all, we will have to fix this. Perhaps we should suspend the fair value rule until we can sort out our options and come up with a rule of valuation that gives consideration to both the level of performance of an asset in the fixed income class and the variability of markets over time in gauging the value of hard assets.

Perhaps they could establish an averaging table for derivation of an extrapolated value. The established value of a real estate asset could start at the entry price and be marked to market annually with the determined value as a derived average of the previous (up to) 5 market valuations for the purpose of ratings.

Simply letting the fickle market whipsaw banks involved in real estate financing is completely unacceptable.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News