Quote:
Originally Posted by Snake Doctor
That point and how the mark to market 157 rule required firms to keep raising more capital every time the value of the paper dropped, even if the drop in value was irrational.
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Financial firms only had to start valuing these products at mark-to-market in November of last year. What ugly timing. What good is mark-to-market when the market ceases to exist? I don't think that was thought through. Mark-to-market is fine when there is a deep liquid market. When the only market is bankruptcy sales then everyone gets screwed.