>> Mark to market to Mark to imagination : blame the doctor

Yesterday, FASB and SEC have provided clarification on the Fair Value Accounting rule. Its back to mark-to-imagination times when "no market for a security exists". Of course, a disclosure to investors when financial results are released is great, but:
- investors are in the dark till the quarterly results are out
- it does not change the risk
- perhaps it has something to do with the bailout bill scheduled to be voted on today? So will the US govt will be paying these imaginary prices to bail the banks out, with the price being paid by the taxpayer?

Blaming the accounting rule is like blaming the doctor for telling you that you are sick!

Petrhaps what is needed are more conservative accounting rules.

Also see:
- Bernanke signals US should pay more for bad debt
- FASB mark to market rule
- A New Rule Change That Could Hurt Taxpayers
- What would happen if we change the accounting rules
- FASB's rules on mark-to-market accounting
- Bank's books cooki'n