Should "mark to market" accounting be temporarily suspended?

  • Thread starter Thread starter Michael T
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Michael T

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Some say that "mark to market" accounting should be suspended in favor of some sort of fair value accounting. They argue that "mark to market" is under valuing a security since there currently isn't much demand for collateralized housing securities. They argue that if a bank could value the assets at a price that reflects the current interest and default rate of the security, investors will then invest in the bank.

Isn't that voodoo economics?
 
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