Mark-to-Market Accounting

Mark-to-Market accounting also know as “fair-value accounting” is hurting our economy. When asset prices start to fall, mark to market accounting means that banks feel pressure to loan less, to make sure their liabilities aren’t greater than their assets. Fortunately on Thursday this issue will be discussed in a House financial services subcommittee.

One well known guru in the market seems to think that it may play a huge roll in the recovery of the financials institutions if guidelines are changed. See his article here as posted on www.cnbc.com