Government is making things worse

http://www.thestreet.com/story/10440625/1/government-made-the-mess.html

"The total derivatives market, which is the real source of the turmoil in credit markets, is $1,400 trillion."

Geez... even more than I thought it was!



"The most recent and most disturbing proposal that is being promoted by lenders and politicians is an attempt to abolish fair value accounting. What this means is that lenders do not need to mark their assets to what those assets could be sold for in the market. Both regulators and auditors oppose this plan to eliminate, or water down, fair value accounting. "

Anyone who has learn about accounting knows that this is pure insanity and is totally ignoring the tenets of conservative accounting! It's would allow NONSENSE like saying that the General Motors stock that you bought for $100 dollars is worth $100 today... so the bank should take it as $100 worth of collateral! Why even bother having an annual report for shareholders if you are allowed such shenanigans???