Good morning to you all. Following the SEC’s decision yesterday to ease mark-to-market accounting rules, there is now talk about a temporary or even permanent repeal of the mark-to-market rules.
First, whether you understand MTM rules or not, you need to know this woud be a big mistake that would haunt our economy for years.
“As Japan learned, not taking the write downs only delays the day of reckoning. They propped up insolvent banks, and suffered a decade long recession for it. That way disaster lay . . .” [Ritholtz]
Second, whether you understand MTM rules or not, you need to read the following article to both learn about MTM and learn why any repeal of MTM would be a disaster.
Simply put, you can’t solve your problems by pretending they don’t exist for a little while. If you are an American, you need to call / e-mail your Federal Representatives and let them know how you feel. You need to do it today. You also need to spread this message as fast as possible via blog posts, blog comments and e-mail to your friends.
The US economy can take it’s medicine now and get over it…or lie in bed for 10 years to avoid pain. Right now, politicians would prefer the latter for no other reason than self-interest. This isn’t being cynical, this is a proven fact following the “CYA” voting that took place in Bailout Bill Part 1.
Regards,
George