Right-leaning politicians and pundits have taken aim at “fair value” accounting.
Who knew that that transparent financial reporting was a leftist conspiracy until now?
R. Emmet Tyrrel in The American Specator is only the latest to urges:
Suspend the accounting policy of “mark to market.” Because of this policy banks and lending institutions have had to mark down their assets, thus devaluing on their books the capital that they have available to lend out. Many of these institutions have healthy cash flows. Yet because they are faced with (hopefully temporarily) devalued assets they are hindered from making loans, and the consequence is the lending freeze that has put the economy into recession.
And there’s the move afoot to roll back Sarbanes-Oxley, which Krupo wrestles into submission here.
When will we ever learn? Politics and accounting don’t mix.
