New York Times' Norris on M2M
"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.