The SEC recently sent out letters to CFOs about Fair Value accounting. It seems the SEC wants to be sure that companies are not valuing illiquid securities at too low a price:
Item 303 of Regulation S-K requires you to discuss, in your Management’s Discussion and Analysis, any known trends or any known demands, commitments, events [...]
I am generally of the mind that banks and other financial insitutions that make bad investments should just be allowed to fail. Failures purge the system of bad companies and allow the system to heal faster. The very last resort should be nationalization as the UK did with Northern Rock. That’s why this report disturbs [...]
The WSJ economics blog has an interesting entry on the SWF assets. They may not be as much as they seem:
If sovereign wealth funds really have $3 trillion in assets why haven’t they bought even more of the U.S. and Europe?
Christopher Balding, an analyst at the Milken Instititue, a Santa Monica, Calif., think tank, gives [...]
Sean Corrigan has a long, but very accurate article at Mises.org about the banking system and why it is at the root of our current problems. Here’s an excerpt but by all means read the whole thing:
With a certain weary inevitability, the cries of pain emanating from those seeing their aspirations ground to dust amid [...]
