No more mark to market and all banks are profitable forever going forward. Oh wait, that news is going to be announced tomorrow.
FASB suspend Mark-to-Market for Banks & Homeowners FASB will suspend Mark-to-Market for banks tommorrow. Banks can use Mark-to-Model valuation instead. The idea was so grand that it spillover to homeowners. Any homeowners who are upside down on their mortgage (ie, their homes are worth less their outstanding mortgage) can now instruct their real estate appraisers to use Mark-to-Model instead of market value. The global credit crisis is now over. Homeowners can use the increase in their home value to get additional home equity loans.
Is it me, or is all I see another smoke and mirrors hair brained idea that will get us in more trouble some how?