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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Road Walker who wrote (460563)3/3/2009 10:27:44 AM
From: tejek  Respond to of 1575619
 
How would the balance sheets be worse if they are not marked to current market value?

I should have said the same... the underlying value of the assets doesn't change, it's just an accounting trick. And if the assets continue to decline in value then you are just hiding the black hole.


Yes, temporarily.....but the theory is that as the economy starts to improve, the value of those assets should also improve.

It's like throwing your brokerage statements in a drawer without opening them and pretending all your holdings are worth what you paid for them.

True........but over time, like with housing, stocks should improve as the economy improves. Not in every case....but generally.