The Residential Real Estate Crash Index Message Board

STOCKTALK

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.

Strategies & Market Trends : The Residential Real Estate Crash Index

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: mutulu who wrote (151152)	9/27/2008 11:16:10 AM
From: neolib	Read Replies (2) of 306849

The whole point of the plan was to buy assets at more than the current distressed market price. In doing so the government would establish a new set of observed market prices, stemming the wave of mark-to-market losses and potentially allowing some banks to write back capital, easing the credit squeeze. Why not simply let everyone keep their assets, but change the accounting rules to a 12-month weighted average valuation. The short term issue is that marking to market every 90-days, especially during a crisis is stupid. It is stupid when assets are bubbling up as well. Perhaps for RE, make it more like 24 months. That will dampen both bubbles and busts. It does not cost taxpayers anything, much less $700B to have the accounting rules changed.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next