the perception that something is crappy can cause it to go crappy.

the Accounting Standards have recently changed from a Historical cost and discounted future cash flows valuation methodology to a mark-to-market methodology...

That should be simple enough, but in the world of high finance there isn't always a market for particular securities...So how do you mark them to market?

Then consider: After Enron and World Com and the dot com bubble, how do you get your auditor to sign off on your "market value" estimates when there is no market?

You can't... So you take the most conservative approach: You write them down to a ridiculously low level.

The Accounting Industry is in a huge state of flux right now as it attempts to stay one step ahead of Congress and the SEC.

And US GAAP is headed for the dustbin of history as a result. Soon all financial statements will be in IFRS.