So here you go. Watch this space...
Congress to Examine Mark-to-Market Accounting
A U.S. House Financial Services subcommittee plans a hearing on mark-to-market accounting rules, which have been blamed for forcing banks to report billions of dollars in write-downs, a source briefed on the matter told Reuters on Wednesday.
The subcommittee on capital markets has tentatively scheduled the hearing for March 12, the source said.
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Bill Introduced to Reinstate the Uptick Rule
As some traders are already aware--on January 8, 2009, Rep. Gary Ackerman [D-NY] introduced Bill HR 302 IH in the House Of Representatives to "require the Securities and Exchange Commission to re-instate the uptick rule on short sales of securities."
The bill has now been referred to the Committee on Financial Services
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31 comments:
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Looks like someone is reading S&A!
RayNLA
If Congress blatantly announces that they want the markets to be a game only insiders can win by removing mark to market, a lot more people with some brains will realize that they are better off staying out of it.
If Congress reinstates the uptick rule, that may drive some traders out of the market - this is harder to tell.
Less people in the market means more pressure down. These changes may stop the market in that after the market plunges after them, it will eventually stop.
Sunshine is the best disinfectant.
Keith, the fact that Congress is considering these ideas at this time should tell you they are bad ideas.
Watch Stewart bury your populist hero and cnbc:
http://www.swamppolitics.com/news/politics/blog/2009/03/jon_stewarts_rant_santelli_reu.html
It's a good 8 minutes long, but worth every second.
to "anonymous" driving the traders out is a good thing. Short selling is the poison of the decade. The shorts only push prices down by artificially diluting shares. This is theft of capital. To then allow this action via Bear Raids to drive Banks out of business is insane. Bear Raids and mark to market accounting were what caused the great depression and were stopped in 1938 by FDR and the SEC. The greedy hedge funds and traders got these repealed in 2007 and now we have a repeat of the great depression......stupid for anyone to defend the thieves and financial terrorists
Can I ask an unrelated question?
What happens to peoples debt- credit cards if the bank collapses?
Yeah right. Lets pretend that reality doesnt exist. Lets fake the ral value of assets. Lets throw basic account rules down the drain. Lets hire science fiction writers to draft balance sheets. Cmon and live in denial. That will do wonders for trust.
PJ
Ending mark-to-market will enable the same type of accounting fraud that got us where we are today.
Accountants will be able to "beat the street by a penny" by refiguring their model, or avoid taxation by marking down assets.
Mark assests to their market value; it's the only way.
Crash? What crash?
Billy Bob, Joe Bob NASCAR still alive and obese with a fat ugly dumbass southern hick redneck family.
NASCAR and cheese doodles should be the new national symbols.
Boogity Boogity Boogity like that retard Waltrip? chants...
"Craig said...
Can I ask an unrelated question?"
NO, pussy.
Suzanne said We Can Do This...
Civility as well as stupidity is for losers.
What took so long?The shorts have this market by the balls.
My friend in kenya said the dow is going to 3000. they are stocking up on rice and beans.
Obviously nobody here traded back in the day when their was an uptick rule. It never stopped the big drops just look back at 2000. In addition if you simply watch a level 2 screen you will see an uptick rule will do nothing in penny increments with the way the market moves between pennies up and down within seconds. Educate yourself and stop talking about the uptick rule. All of you lose credibility. Do some research and you will understand why we have not bothered to waste the time nor the money with this..
Suspending mark to market won't work because the assets are worthless no matter how long they wait. I want more than the $40 I can get on ebay for my first edition Quackers beanie baby I paid $1500 for in 1999 but it's never going to be worth that much no matter how long I wait.
You mean "you've" been saying.
Most, here, disagree.
Citigroup shares at $1, costing less than a can of coke. Ahh ha!
Karl Denninger is more pessimistic than normal today.
http://market-ticker.org/
oh great, so it's back to "mark to myth", "mark to gee-this-is-what-I want-it-to-be-worth, so there"...THAT will make balance sheets more believable and trustworthy...! LOL!
hmmm, yea, less transparency will fix the problem.
there is too much transparency and information, yea, that's the ticket.....
hey, why not examine the rules that require companies to report losses at all!
If a little is good then more must be better!
WRONG, Keith.
YOU've been saying those things. Many comments to your posts are for mark-to-reality/market. Don't lump us into your fantasy world where opacity = transparency.
to "anonymous" driving the traders out is a good thing. Short selling is the poison of the decade. The shorts only push prices down by artificially diluting shares.
---------------------------------
dude, it cuts both ways. shorts also provide buying support when cover when everyone else is selling after the stock has dropped.
like it or not, shorts play an important role. you can't blame the problems of citi, bofa, etc on shorts, no way.
No worries. Justice will be served:
<< James 5 >>
King James Bible
--------------------------------------------------------------------------------
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you. 2 Your riches are corrupted, and your garments are motheaten. 3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days. 4 Behold, the hire of the labourers who have reaped down your fields, which is of you kept back by fraud, crieth: and the cries of them which have reaped are entered into the ears of the Lord of sabaoth. 5 Ye have lived in pleasure on the earth, and been wanton; ye have nourished your hearts, as in a day of slaughter. 6 Ye have condemned and killed the just; and he doth not resist you.
It seems a little late to re-instate the uptick rule. Unless they are waiting for the last shorts to make that last bit of money... Then when the market really is at rock bottom, re-instate it just to show what good guys they are. No matter that there is nothing left to short.
That's how I see it after reading the comments to the articles referenced: a lot of people bought into stocks over the last decade at DJIA 7500+, following prescribed formulas ("subtract the number of years you plan to retire in from 100 ..."), and are now begging for miracles that would - at best - usher in a fragile period of stabilization before the things crash down further (as they have to - just look at the graphs from 1982 on).
I'm not going to challenge whether the short-sellers possess any power of shorting a solvent enterprise into bankruptcy. More debatable is why everyone should "invest" for retirement in droves, copying each other's behavior without fully recognizing the risks.
And, above all, what prevents me from going full-steam ahead with buying Russian stocks this year is exactly the fact that they have largely banned short-selling in Russia, diminishing the reward for endeavoring to drill down the present lows. Less risk is ultimately more risk, let's put it this way.
Anonymous said...
hmmm, yea, less transparency will fix the problem.
there is too much transparency and information, yea, that's the ticket.....
Well, if the big boys get to mark to fantasy it needs to apply to everyone. I want my investments to be marked to "my broker's" fantasy every single day at market close.
I also want the gold price to be marked to fantasy, along with all the junior miners and commodities. Treasuries too.
That should solve the entire problem and get the strippers and taxi drivers investing, flipping and buying gold again.
Anonymous said...
Karl Denninger is more pessimistic than normal today.
So is the news. He just reports it.
Under the new mark to fantasy accounting rules, you are hereby advised, that Citigroup has been granted an uptick and will now be quoted at the new price of a $1000 per stock, to reflect the true value of its underlying assets as generously provided by the taxpayers of America; when trading resumes on Friday.
You are directed to ignore the current quotes for the stock on the Dow.
Warm regards
helicopter ben and turbo tim
"My adversaries...applied the one means that wins the easiest victory over reason: terror and force."
-Adolph Hitler, Mein Kampf, Vol 1, Ch. 2
Ring any Bells, Sheep?
You want scripture, You Sure? eh? Well, O.K. Here We Go
This from -Revelation 2:21-23
I Warn You, stand BACK, this is how The Big Boys Write:
"And I gave her space to repent of her fornication, and she repented not...Behold, I will cast her into a bed, and them that comit adultery with her into great tribulation, except they repent of their deeds...And I will kill her children with death...
Makes you want to smother a few Realtors, doesn't it?
PUNISH THE GUILTY
What about all the executives responsible for the demise that are still working in the same position.
Mark-to-Fantasy and Quantative Easing will go hand-in-hand over the cliff chanting: "Long Live the Kleptocracy!"
Great, now that they've got tons of bailout money
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