Once again, mark to market is a red herring instead of mal-investment. Listen to Rick Santelli, he gives Rich Berg a verbal murder of logic. Rich talks about running the country out of capital if values of securities continue to be marked down. Well, that is the problem.....credit capital is too plentiful and now an adjustment is occurring, trying to prop values up through accounting interference will only lead us to a Japanese like zombification for the next 20 years. If cash flows are richer than valuations suggest, then Lifting The Komono is the solution. Let it be known and let the market decide, if cash flows are rich, buyers will enter (at attractive values). Doing the oppositte will only infuriate the problem and extend its length of reckoning. Right now, we're sort of in limbo in between these two paralells, with mark to market but low transparency. The solution is not one or the other, but more transparency and market.
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