It was stated that a little known accounting rule, FAS 157, which they referred to as mark-to-market, was one of the causes of the market crisis. It wasn't little known at all, FAS 157 was written in 2007, and became effective in November 2007.

Truth is that for the most part those firms which had adopted this FASB when it became effective, were not the ones that were in trouble.

For a simple breakdown of FAS 157 go to this link. <link>

I should link to the article at factcheck.org <link>

Thanks Navy...

As you know I folded my sixty some stocks up over two years ago when I figured out that the markets were sleeving aces whenever they wanted to. Several companies where I had thousands of shares of stocks went bellie up over night never to return. I just got as close back to where I was with some fast trades and one day had a ball selling every asset I owned. Then, I took those proceeds and paid off every debt I carried. The other day when congress turned yellow and voted the BAIL OUT in before the vote concluded several of us went to our banks and pulled out 99% of our LIQUID ASSESTS where we quickly learned that none of these banks had denominations higher than ONE-HUNDRED DOLLAR bills. Still, we had focused and prepared for this event weeks ahead of time. We all took our FDIC insured balances out and each of us were asked "WHY" we were doing what we did at every bank! I told the banker I was taking my four kids on an expensive holiday--then as we got to talking I told him the real truth!

""But Seasoldier, don't you know your money is safer in here than out there?""

"Out where" I asked?

"Wherever you live," he replied!

Then I proceeded to ramble off to him that I was not going to bail out the goddamn FED so his rich boss could live in luxury and travel the world. Hahahahahahahahahahaha He didn't even know what the FED was!

Seasoldier/Constantly polishing the edge.

You should LINK that article around the necks in congress and yank!

Seasoldier/Hahahahahahahaha

He must have been a youngster. I don't know what they're teaching anymore, when kids can't answer simple geography questions much less finance.

I'd like to link something around their necks. This statement is what the FBI should hang every one of those underwriters and bankers with.

It goes further than that and i doubt the FBI has time.

Seasoldier/Soon, we'll be doing it ourselves again. Poor leadership...

They are all the products of the FEDERAL REGULATED SCHOOL SYSTEM! Meaning, that whatever the federal government deems necessary from year to year is all they teach--they never tell you or emphasize the OTHER SIDE OF THE STORY!

Seasoldier/