Well they did it…
FASB Eases Fair-Value Accounting Rules Amid Lawmaker PressureKey phrase, "Pressured by lawmakers and financial companies..." They are sincerely cohorts in crime. Separating the two is the only real answer to getting America back.
By Ian Katz
April 2 (Bloomberg) -- The Financial Accounting Standards Board, pressured by U.S. lawmakers and financial companies, voted to relax fair-value rules that Citigroup Inc. and Wells Fargo & Co. say don’t work when markets are inactive.
The changes approved today to fair-value, also known as mark-to-market, allow companies to use “significant” judgment in valuing assets to reduce writedowns on certain investments, including mortgage-backed securities. Accounting analysts say the measure, which can be applied to first-quarter results, may boost banks’ net income by 20 percent or more.
Of course the XLF and most financials have turned into obscurating rocket ships. The futures are up, of course, and the DOW even broke the high it made just a few days ago. Here’s a chart of the overnight action, the /ES is at 825.
Meanwhile, back in lowly mark-to-reality land, unemployment claims for last week rose, unexpectedly of course, to 669,000. Oh, and last week was revised higher and continuing claims rose to only 5.7 million people.
Of course the stochastics are overbought again. The dollar is going down again, and bonds are going wrong way up again. Good luck playing this "market," the bankers can have it all to themselves as far as I'm concerned.
I’m certain that the CNBC crowd will be crowing in delight over the accounting changes, but I can assure you this was another decision that will ultimately be long term negative for America.
Mark-to-fantasy? Hello again – you’re a fine pigman’s friend:
The Cars – Hello Again: