There's no one cause for this sub-prime mess.

Current Events » in reply to re: The lack of regulation

TAFKASE — 3/17/2008 1:49:23 PM (archived)

If there was you can bet that the politicians would be grandstanding...

Regulation/De-regulation... Can't be blamed.

Changes in accounting standards since Enron are probably one of the biggest causes. Look up FASB 156 and FASB 157 which have forced a reckoning on tough to value securities...

Its not just a coincidence that those new accounting rules took effect at about the same time as the Sub-prime fiasco started to get headlines.

FASB 156 and 157 are one of the first steps in moving the Accounting standards away from US GAAP to IFRS (Internation Finance and Reporting Standards).

So as this shift to IFRS continues...We can expect more financial turmoil.

Who is leading the changes to IFRS? Well, after Enron, World Com, Etc...

That would be the SEC, Congress, and the Accounting Industry itself.

The whole thread (20 posts)

Too much deregulation? Maybe. - TB - 3/16/2008 2:44:06 PM
- The lack of regulation is part of the cause of the current crisis. - Bowser - 3/16/2008 11:15:10 PM
  - If I owned Bear Stearns stock at last Friday's close - TAFKASE - 3/17/2008 1:41:13 PM
    - Just saw the figures: market Cap on Friday was 3.5 Billion - TAFKASE - 3/18/2008 1:31:38 AM
  - re: The lack of regulation - TB - 3/16/2008 11:22:24 PM
    - There's no one cause for this sub-prime mess. - TAFKASE - 3/17/2008 1:49:23 PM
      - re: what? - Yeti - 3/18/2008 3:07:38 AM
        
        Who says the bets were crappy? - TAFKASE - 3/18/2008 3:08:57 PM
        
        The debt swap market, wherein ultimately the instruments are valued. - Yeti - 3/19/2008 2:43:43 AM
        
        for some securities there is no market-place so you can't clearly establish a "market value. - TAFAKSE - 3/19/2008 3:37:08 PM
    - Geez, another interest rate cut. - TB - 3/16/2008 11:24:11 PM
      - Its not over... Bernake looks like he is more confused the George Bush at a Mensa meeting. - TAFKASE - 3/18/2008 1:29:25 AM
        
        pushing a string - Yeti - 3/18/2008 3:05:03 AM
      - In this case it's a helicopter, not an airship. (n/t) - podrock - 3/17/2008 3:54:22 AM
      - Wghat happens when interest rates drop to the point... - Lee - 3/17/2008 1:13:32 AM
        
        The Fed Rate is the rate at which they borrow money. - TAFKASE - 3/18/2008 9:11:32 PM
- Actually, that pretty much sums up my point of view. - ER - 3/16/2008 5:58:48 PM
- The US is socialist for the favored corporations. - Bowser - 3/16/2008 5:47:31 PM
  - "money to funnel to the wealthy" - TB - 3/16/2008 7:03:24 PM
    - You didn't even follow the directions, did you? Why, oh why, should I bother??!! (n/t) - Bowser - 3/16/2008 8:12:27 PM

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