SEC adopts (partially) mark-to-market fix
The SEC stepped in today and eased or clarified the mark-to-market lending rules. This has the immediate effect of freeing up credit for businesses and individuals. Doing so cost the taxpayers nothing. While they didn't suspend it entirely, they have, by clarifying the rule, given the industry some breathing room.
Even with this action today, the Senate still seems intent on spending $700 billion dollars of taxpayers' money! Outrageous. This MTM solution was partially proposed by Dave Ramsey (and many others have suggested the same thing) yesterday in his Common Sense Plan, item II:
MARK TO MARKET
a. Remove mark to market accounting rules for two years on only subprime Tier IIIbonds/mortgages. This keeps companies from being forced to artificially mark downbonds/mortgages below the value of the underlying mortgages and real estate.
b. This move creates patience in the market and has an immediate stabilizing effect onfailing and ailing banks–and it costs the taxpayer nothing.
Powerline says, "If revision of the mark to market rule has as much impact on credit markets as many have predicted, it may strengthen the resolve of those who think there are better solutions to the problems in our financial markets than a $700 billion bailout." See the article here.
Please call your U.S. Senator on Wednesday and encourage your friends and family to do the same.
Mark Pryor(877) 259-9602 (Toll Free from Arkansas) D.C. Office(202) 224-2353
Blance Lincoln800-352-9364 D.C. Office(202) 224-4843