New York Times' Norris on M2M
Couldn't agree more with this article in today's New York Times from Floyd Norris. I especially like the way it wraps up ...
"Next time you hear a banker denounce mark-to-market rules, ask if he runs his business that way. Will he offer you a mortgage loan based on what you think your home should be worth, which you can repay only if you make a lot more money than anyone will pay you? If so, then perhaps the bank should be able to use “Alice in Wonderland” accounting on its own books.
"Or maybe that is not such a good idea. The banks already tried that, with liars’ loans. Those loans did not work out so well."
I also like these comments from Zacks, which hammer on some of the same points as I have. Another piece from David Reilly at Bloomberg covers this issue nicely.
"Next time you hear a banker denounce mark-to-market rules, ask if he runs his business that way. Will he offer you a mortgage loan based on what you think your home should be worth, which you can repay only if you make a lot more money than anyone will pay you? If so, then perhaps the bank should be able to use “Alice in Wonderland” accounting on its own books.
"Or maybe that is not such a good idea. The banks already tried that, with liars’ loans. Those loans did not work out so well."
I also like these comments from Zacks, which hammer on some of the same points as I have. Another piece from David Reilly at Bloomberg covers this issue nicely.
posted by Mike Larson at
10:57 AM
1 Comments:
At first I though it was Chuck Norris.
"Chuck Norris doesn't mark assets to market, he stares down his counterparties until they pay full price."
By
Anonymous, at March 14, 2009 at 1:38 PM
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