The Financial Accounting Standards Board is positioning to recommend to the US government to change accounting rules to follow HONEST accounting!
Hurray! The accountants have decided the rules being followed are not honest! A little late, like 8 years late!
If these changes are adopted two things will happen.
1) Bankruptcy on many companies, including financial companies, with stock market plunging to new lows.
2) The US will heal quicker, and my vision of a 5 to 10 year recession depression may turn into a 3 to 5 year one!
These accounting rules will change several MAJOR flaws I have been griping about for some time. First, all debts will be valued at MARK to MARKET! woot!
Second, Debts won't be treated like assets...they will be treated as ..... debt! What a novel concept!
Do I think this will pass! Hell NO! Not until the market is SPX 600. As long as companies think they can get away with fiction, and politians think they can create reality, let the party continue. But the day this does pass, is the day I start looking to cover all shorts, and go long for the next 5 years. Lets hope that it's sooner rather than later so America can move on.