The rank scent of a prime time Monday press conference being prepared hints that the White House is likely nearing a banking package which our super secret sources say includes the bad bank (somewhat smaller than anticipated), government guarantees (surprise surprise) and insurance for Iodine-129 assets. As to the pricing of said assets? Mark-to-market looks to be history. This is good news as now my Fantasy Accounting League can thrive once more.
Totally Unfounded Rumor Of The Day: Mark-To-Market Marked To Market
Posted by Equity Private, Feb 05, 2009, 11:36am
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Posted by guest , Feb 05, 2009 11:40AM
Fantasy accounting league.
Gold, pure gold.
Posted by guest , Feb 05, 2009 11:42AM
Oh is that why the market is rallying? I thought is was because they found Osama....
Posted by Lowly Assistant , Feb 05, 2009 11:43AM
Reality bites.
Posted by guest , Feb 05, 2009 11:43AM
I hated accounting in college and I hate it now. Understanding it is like trying to stack wet BBs on the rounded rail of an ocean-going vessel.
Posted by guest , Feb 05, 2009 11:44AM
I say from today on we denominate assets in $ and liabilities in pesos.
oBAMa.
Posted by guest , Feb 05, 2009 11:45AM
I fail to see how telling investors what you "think" something is worth is better for our financial system that what the market thinks its worth. Why not just assign every debt instrument a value of par?
Posted by guest , Feb 05, 2009 11:45AM
@3 elaborate, yet not funny.
Posted by guest , Feb 05, 2009 11:47AM
@6 the financial system made up of liquidity-starved banks and private equity investors giving a one-sided market?
Why do you think the bid from PE is fair value?
What if we priced these assets by having PE give us a 5% wide two-sided market?
Posted by guest , Feb 05, 2009 11:51AM
@6: why as low as par? no, not only is the occupant of that double-wide as creditworthy as Uncle Sam, but the long-term prosperity right around the corner insures interest rates will soon be 0.
Posted by guest , Feb 05, 2009 11:51AM
@8, you mean a wideclops market?
Nobody sees fair value at this time
Posted by guest , Feb 05, 2009 11:53AM
It's official, FASB is now referring to it as MYASS-157.
Posted by guest , Feb 05, 2009 11:56AM
Too subject to manipulation; didn't value.
Posted by guest , Feb 05, 2009 12:00PM
Fantasy Accounting League! Getting more Levinesque every day. Well played, EP.
Posted by guest , Feb 05, 2009 12:02PM
If it wasn't so sad it would be funny.
So the answer to easy money is easier money. And the answer to, to little transparency is no transparency.
Fucking brillant.
I am now going to assume that the answer for all heroin addicts is MORE heroin!! And for all the obese - MORE Big Macs!!
A true made in America solution!
Posted by guest , Feb 05, 2009 12:07PM
What about equites? For instance, my model shows BAC worth $42.75 based on expected cash flow.
Posted by guest , Feb 05, 2009 12:07PM
I-129? I would have gone with something more lethal.
Posted by guest , Feb 05, 2009 12:08PM
@15 LMAO!
Posted by guest , Feb 05, 2009 12:09PM
Shit-I just tried to pick up CMBS off the waiver wire for my team, but it was too late.
Posted by guest , Feb 05, 2009 12:10PM
@14 - Amen. I think Thursday is the new Friday. Get hammered tonight because tomorrow doesn't matter anyway.
Posted by Equity Private , Feb 05, 2009 12:28PM
"Posted by guest, Feb 05, 2009 12:07PM
I-129? I would have gone with something more lethal."
I was more interested in its half-life and status as a beta and gamma emitter than its overall activity.
Posted by guest , Feb 05, 2009 12:56PM
Too firesale, didn't mark to book
Posted by BottomFellOut , Feb 05, 2009 12:57PM
Funny how the US makes fun of Japa and how they never fessed upto the 1980's mess.
US will do the same. Will be great - a stock will be at $50 and file the next day because all assets can be marked where-ever they desire.
US will have all assets reclassified as level 3 assets.
Posted by guest , Feb 05, 2009 1:06PM
So the bad bank (US Taxpayer funded) can buy bad assets at marked-to-fantasy prices instead of marked-to-market. There you go, the crisis is over. Right? Right? Please say something.
Posted by guest , Feb 05, 2009 1:22PM
Assuming what's good for the banks should be good for the consumer and we want to get credit flowing again, does this mean people in CA, FL, NV, wherever can have their previously cut-off HELOCs restored because they can tell the banks that their house is in fact still worth what they paid for it?
Posted by guest , Feb 05, 2009 1:22PM
I love how the market is (supposedly) rallying on this news. Now financials are going to be even harder to value, so what the heck, just bid them up!
Posted by guest , Feb 05, 2009 1:26PM
They better snuff this shit out. The AICPA needs to step in. CPAs need to show some fucking balls when shit like this comes around. We're the keepers of objectivity, dammit.
Posted by Anal_yst , Feb 05, 2009 1:28PM
I'm benevolently instituting the "Price is Right" accounting standard, and I'll bid exactly - not a penny more - $1 for every asset, er "asset".
Posted by guest , Feb 05, 2009 3:43PM
@24: nice
Posted by guest , Feb 05, 2009 3:44PM
so will this one day be known as the "Great Quant Unemployment Decree"?
Posted by guest , Feb 05, 2009 9:15PM
A friend made a very good point today when I told him about the mark to market lunacy. His response, "They already did that. What the hell do you think Level III really is? Financial assets or liabilities where the determination of fair value is dependent on inputs that are both UNOBSERVABLE and SIGNIFICANT???? Is it like pornography, you know it when you see it? Or do faeries come in while everyone is sleeping and do the work for us!"