Cathy Classics by Cathy Guisewite for April 06, 2009
April 05, 2009
April 07, 2009
Transcript:
Tax man: The economy will recover! Markets will stabilize! Investments will rebound! Happy days will be here again! PAT PAT PAT PAT PAT "Client face" Tax man: Come on in! I'm ready for you!
pschearer Premium Member over 15 years ago
The best news so far in the financial crisis is that the gummint has backed off the requirement that banks value their assets according to current market prices independent of long-term investment strategies.
The “mark-to-market” rule imposed on the banks means that if incompetent Bank-A starts selling its assets at fire-sale prices, then reliable Bank-B must report its assets at today’s reduced price, even if they had intended to hold the investment for twenty years. The result is that many solid banks suddenly looked like they were failing, which is then used as an excuse to impose more banking intervention.
Repealing the forced requirement to use this rule is a huge help in restoring confidence (the stock market agrees), though the bigger issue is the fact that a simple federal regulation can damage an entire economy at one shot.
Big-government fans can try to blame the crisis on lack of regulation, but banks have been over-regulated for decades. There is NEVER enough regulation to satisfy these folks.
bobdalebaker over 15 years ago
Right on.