[ale] [OT][Way OT] Industrial Power Question - Further OT - Oil companies

[Pete Hardie]

On Fri, Feb 6, 2009 at 15:50, Greg Freemyer <greg.freemyer at gmail.com> wrote:
> On Fri, Feb 6, 2009 at 3:21 PM, Jeff Lightner <jlightner at water.com> wrote:
>> What crap!
>>
>> Book value of capital assets does not increase while they are held.
>
> Unfortunately you are wrong.  Ever heard of "Mark to Market".  Blamed
> by many for our financial meltdown.
>
> I can only tell you what wikipedia has to say, but per it, as of Nov.
> 2007 the rules changed.
>
> http://en.wikipedia.org/wiki/Mark_to_market#FAS_157
>
> I do know that a lot of talking heads were complaining about "mark to
> market" back in Sept / Oct because now assets MUST be valued at "fair
> market value" in a lot of cases and with real estate values dropping
> it was devastating banks.
>
> Isn't it great to know this one little regulation change may have
> triggered the entire collapse of our financial industry.

It may have been the trigger of the pop, but it wasn't the cause of the bubble



-- 
Pete Hardie
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