Is Mark to Market a bad idea?

I wrote about this last month, and it’s been in the news again this past week, because there’s once again discussion to “relax” the mark to market accounting rule known as FAS 157.  I expect that the discussion in Washington is what’s behind the rally in financial stocks this past week.  It doesn’t really matter, […]

Financial Follies

In going through the financial news stories on various sites tonight, this one from the NY Times struck me as particularly insightful.  Lets see what they have to say about the state of the financial institutions…. The story starts with this: Somehow, $4.4 billion just evaporated at Merrill Lynch. Less than two weeks ago, Merrill […]

The running of the bulls

From the 400 point rally today in the stock market, you’d think that the bulls are running rampant in Pamplona.  And you may be right, however…. Stocks are still down over 10% for the year.  The highly leveraged banks and Wall Street firms are still highly leveraged.  Massive amounts of mortgage backed securities – and their […]

Grasping at Straws – Take II

Just yesterday I mentioned the CNBC report about Ambac that caused a major market revesal a couple of weeks ago, and now it happens again today.  How many times are these people going to cry wolf?  And (perhaps a better question) when do people stop believing what CNBC says? Perhaps the strangest part of today’s […]