Wednesday, October 01, 2008

IBD: Mark-to-market accounting not responsible

Investor's Business Daily says mark-to-market accounting is not to blame for the current financial troubles.


  1. Wait a minute!!!

    I absolutely agree. Once it is clear that your stuff is worth squat, and I am afraid to lend to you, a change of accounting is not going to change that unless it changes your cash flow (tax shield maybe), which won't be by much.

  2. I agree and disagree. Here's why: The current crisis would of been delayed, and possibly worse, if the mark-to-market wasn't in effect. So it would of happened latter and may of been worse.