14
Mar

Changing the mark to market to a mark to reasonable value of the underlying asset would have limited the mortgage problem to it's real level. That and rescinding Sarbanes-Oxley. It should still be changed but the damage is done.

A short ban would be ridiculous. How about a long ban? Same thing on the up tick rule. How about a down tick rule? A free market has to be free to move to reflect perceived value. The only thing that’s defensible is a daily limit, but that just delays, and pretty much insures, further move the next day. There are some limits that are triggered upon huge market moves. that is enough.

As a case in point, would Bank of America really be worth more than a buck if a short ban had kept it at 5, 10, or 20? Not.

This entry was posted on Saturday, March 14th, 2009 at 5:26 am and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or TrackBack URI from your own site.

Leave a reply

Name (*)
Mail (*)
URI
Comment