Stock Market

[hi_im_god]

Originally Posted by wiphan

I believe it was more the talk of ways to fix Mark to Market by Big Ben that sparked the rally more so than CITI talk about making a profit. What people don't realize is the banks are making $ and showing profit it is just an accounting issue (thanks enron) that is screwing everything up. Imagine if you had to revalue your home daily and if it went down you would have to pay the bank more money and then if your neighbor sold his house at a discount then your house keeps going down value and you pay the bank more $, then another neighbor has to sell his house because he doesn't have the $ to pay the bank now he sells lower and you have to pay more. This is more or less what mark to market is doing to banks. They are not losing real $. I believe more talk or change to different accounting principals will spark a huuuge rally in the financials and huge gain in the stock market. Most good financial companies are undervalued. Just my uneducated opinion though....

i've seen a couple of posts on mark to market.

here's my question: if you believe the market is the best way to fairly value assets, what's the current free market argument against mark to market?

if odd accountancy rules are needed to make sure our larger financial institutions remain technically solvent aren't we just prolonging the pain by ignoring the fact they don't hold asset's to cover all the deposits?

i'm looking for some of the pure free market, no government interference folks to explain this to me.

and why can't obama solve this with a waive of his magic libtard wand? (<timm: i'm being ironic. don't agree with me.)