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Thread: FAS 157 is stupid

  1. #76
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    or obsessive sexual deviants who burgle homes to steal panties. Yet these are the people in whose hands our entire political future now rests.
    Oh no, Lando's not going into politics is he?

  2. #77
    Registered User mireland's Avatar
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    Quote Originally Posted by werz View Post
    Oh no, Lando's not going into politics is he?

  3. #78
    Ultimate Member herosrest's Avatar
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    Yup, free the poles and legs-is-late.
    During deep sleep IT came to me and the future of processing is clear.
    Future processors will primarily be digital tuning radios acting as grid computing nodes.
    Voila. See ya in hell.
    PROCESSING

  4. #79
    Ultimate Member herosrest's Avatar
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    Heres's one of the money worshippers, giving a guarded and oh so subtle, heads up about the mess. He is actually discussing the Greek 'Theta' In mathematical finance, the Greeks are the quantities representing the sensitivities of derivatives such as options to a change in underlying parameters on which the value of an instrument or portfolio of financial instruments is dependent. The name is used because the sensitivities are often denoted by Greek letters. It is an over riding PRINCIPLE of finance , business in general and dervative tradeing.

    George Soros - "In all the uproar over AIG, the most important lesson has been ignored. AIG failed because it sold large amounts of credit default swaps (CDS) without properly offsetting or covering their positions. What we must take away from this is that CDS are toxic instruments whose use ought to be strictly regulated.......... .......... CDS came into existence as a way of providing insurance on bonds against default. Since they are tradable instruments, they became bear-market warrants for speculating on deteriorating conditions in a company or country. What makes them toxic is that such speculation can be self-validating.

    Financial markets don't deal with the current reality, but with the future -- a matter of anticipation, not knowledge. Thus, we must understand financial markets through a new paradigm which recognizes that they always provide a biased view of the future, and that the distortion of prices in financial markets may affect the underlying reality that those prices are supposed to reflect."
    __________________________________________________ ________________
    Theta and derivative trading will not go away, neither will manipulative short trading, until the people doing it are locked up and the keys tossed away. Short advantage disembowels stocks, which are the 'only' tool left with which to counter this nightmare finance fiasco. It is so simple to do it beggars belief. Load your software, run prices for fair value and sell every time the market climbs. This takes rocket scientists to understand? The stocks are undervalued massively and going to stay that way if Bears have their way. Tax it at source. Tax all financial trading at contract and make them justify and claim overpayment. Just to simple isn't it. Make them WAIT!

    Soros fights shy of condemning, he wouldn't would he.

  5. #80
    Ultimate Member herosrest's Avatar
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    A former Lehman Bros. trader alleges Barclays Capital Inc. owes him $19.6 million in severance pay, saying the British investment bank let him go shortly after it acquired Lehman's broker-dealer business.Maximilian Coreth, who managed Lehman's North American gas and power-trading unit, insists that Barclays took on $2.5 billion in severance obligations to employees when it purchased the failed investment bank's brokerage. Looks like he 'Maxed out!'
    He says Lehman Bros. Inc. hired him away from his managing director position at Morgan Stanley in April 2008, just five months before Lehman went belly-up. According to the job offer letter from LBI, Coreth received a base annual salary of $200,000 and a yearly bonus of $9.8 million. Coreth says his employment contract called for him to receive $19.6 million in severance payments if he were let go before February of this year.

  6. #81
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    Quote Originally Posted by herosrest View Post
    Yup, free the poles and legs-is-late.
    Who's legs, his four legged gf, I'd hate to speculate as to why she's late...

  7. #82
    Ultimate Member herosrest's Avatar
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    The Wall Street Joke.
    Those able each day to tread and trade Wall St.'s absent minded walkway can be forgiven not noticing the Bull.
    7000 lbs of Bronze....... hehe. Do the maths.
    Its balls are solid 'GOLD'. 'git sum! - Honest. No joke - apart from Di Modica's.
    Where do you hide a precious metal stash, so's no-one ever suspects. The stunt of stunts.
    Pure golden Bull's balls.
    Now l wonder who looked out over Bowling Green plaza, all day!

    CLICK! (Gently)



    Last edited by herosrest; 03-28-2009 at 07:31 PM.

  8. #83
    Registered User mireland's Avatar
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    bull................shiz

  9. #84
    Ultimate Member herosrest's Avatar
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    Holy cow!
    Last edited by herosrest; 03-28-2009 at 07:42 PM.

  10. #85
    Ultimate Member herosrest's Avatar
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    Can it be, possibly, that the huge focus upon 'London GG20' has put people to sleep.??

    March 30 (Bloomberg) -- According to Morgan Stanley Investors should sell U.S. stocks following the steepest rally since the 1930s because earnings are likely to keep weakening.

    U.S. companies will start reporting results for the first quarter in the next two weeks. Analysts, who have overestimated profits for every period since the third quarter of 2007, expect S&P 500 earnings to drop 36 percent on average, paced by retailers, automakers and semiconductor suppliers, according to data compiled by Bloomberg. They’re forecasting S&P 500 companies won’t halt the longest streak of declining earnings since at least 1947 until the fourth quarter.

    Bernanke Seeks to Avert Pressures on Fed A very interesting read!
    March 30 (Bloomberg) -- At 4:30 p.m. on March 23, on a day dominated by release of the Obama administration’s plan to save the banking system and the fourth-best day in postwar Wall Street history, the U.S. Treasury and Federal Reserve released a one-page joint statement on the division of economic responsibilities between the two agencies.

    Amid the flurry of news, the statement passed with little public attention; neither the New York Times nor Wall Street Journal printed articles about it the next day. The release said that while the Fed collaborates with other agencies to preserve financial stability, it alone is in charge of keeping consumer prices stable, its independence “critical.”

    The statement was the culmination of a behind-the-scenes, two-month long debate involving the Fed’s Open Market Committee, as well as the Treasury. The discussions were driven by Chairman Ben S. Bernanke’s concern that work with the Bush and Obama administrations on repairing banks and markets not lead to attempts at political pressure later that would delay the start of measures to combat inflation.

    “This is all about independence,” said Laurence Meyer, vice chairman of Macroeconomic Advisers LLC in Washington and a former Fed governor. “Even though the Fed is cozying up to the Treasury, it is important to know that the Fed would maintain some stability over monetary policy.”

    The stock markets are not going up any time soon. This is because of 'Mark to market' accounting valuation. In pratice the 'rules' - prevent a recovery.

    Corporations, around the world lost big time, Record numbers of decline, huge, huge losses this 4Q. The devaluation of stocks and shares, nine-ten months ago, happened to the stock and shares. Yup, all those little zer0's and points and the interest they pay banks and stock holders.

    Now, it has arrived in the real world and because of mtm accounting, we do the 30% devaluation for REAL. It's here,everywhere, all around you. They had 9 months to sort this out before it got where it is. The force, pure global force - able to sweep everything before it is a 30% devaluation of all wealth in like, 18 months. The scale of what has happened is beyond comprehension until seen out front in a cloud of dust and rubble.

    £1,000 18months ago, is worth £700 Now in the accounts. Your £700 now, which would have been a £1,000 18 months ago, will be worth £490 in 13-14 months time. Devaluation has a logic and practice all of its own.

    Oh yeah. G20. [/URL]


  11. #86
    Registered User mireland's Avatar
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  12. #87
    Ultimate Member herosrest's Avatar
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    Almost poetic, really.

    Fresh Write-Downs and Job Cuts Seen At UBS

    Switzerland’s UBS is expected to announce more write-downs and job cuts in the coming days, Swiss newspaper Sonntag reported on Sunday.

    Shares in UBS, the world’s largest wealth manager in terms of assets, fell 7 percent on Friday as rumors swirled of a profit warning and more write-downs in the first quarter, Reuters said. The bank, one of Europe’s hardest-hit in the crisis, has already written down more than $49 billion since mid-2007.

    UBS is expected to write down at least another $2 billion on illiquid assets, including asset categories so far not much in the spotlight such as Credit Linked Obligations (CLOs), the newspaper said citing people familiar with the matter.
    Last edited by herosrest; 03-30-2009 at 01:32 PM.
    During deep sleep IT came to me and the future of processing is clear.
    Future processors will primarily be digital tuning radios acting as grid computing nodes.
    Voila. See ya in hell.
    PROCESSING

  13. #88
    Ultimate Member herosrest's Avatar
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    Quote Originally Posted by herosrest View Post
    This CLICK is the debate which underlies finance today. A HANDFUL OF PEOPLE IMPOSED new ACCOUNTING RULES and insist they are maintained. lt was a worthwhile debate - But should people able to spend all day avoiding paying taxes be given leeway. lt's a game ain't it.

    Accountants favour a balance sheet made up of assets that can be converted to cash. There's no better way to find out the value of something than to put it on sale. This is called SHORT TRADING and it is now institutionalised. Short trading is systemic. It is not a risk. It is certainty.

    Proponents of the rule's suspension are saying is that there are two values, market value and maturity value. They say maturity value is what matters because market value can be tainted by panic.
    -- Mark-to-market -- or fair-value -- accounting has one big problem: Some very powerful people tried to change it. A movement spurred by bankers and Wall Street power brokers argued for at least a temporary suspension of Financial Accounting Standards Rule 157.

    What is FAS 157? It is the rule that has essentially put us in this credit crisis. FAS 157 requires banks to mark securities -- including collateralized debt obligations -- at the going price. In a nutshell, it requires financial firms to value securities on the balance sheet at the price they would fetch in the open market.

    All of those write-downs you've been hearing about have come as a result of the demand that banks value securities composed of risky loans at market prices -- which, for a multitude of collateralized debt obligations, means zero.

    Proponents of suspending the rule argue that a market price isn't a fair way to value these securities. If a worthless CDO of 1,000 loans is held to maturity, some of those loans will be repaid. In fact, many CDOs are performing with zero or small default rates, but they are deemed worthless because there is no place to trade them in the market. No one wants them.
    Mark-to-market manipulation - The eBay Rule.
    Supporters of the rule point out that FAS 157 isn't as rigid as critics suggest. Indexes, past prices and cash flow from a security all are fair game when determining the security's value. If it was market pricing alone, basically the whole CDO market would be worth a cup of coffee.

  14. #89
    Registered User mireland's Avatar
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    The traumatized cyborg delicately tried to avoid the nonexistant boneless chicken patty.

  15. #90
    Ultimate Member herosrest's Avatar
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    FAS 157 is stupid
    So too, those who designed and implemented it. They are Can'ts.
    Can't do this. Can't do that. 'They' can't do anything right!
    Seriously lobotomised neaderthals who didn't think it through and have now to be ordered to sort it out.
    Yet still they make changes under PROTEST. Commit them! 'insanity rules' that is FAS-157

    Oooh look! Right at the end of GG-20, out it slips, a tiny little line here and there.......... ahem, we've changed the rules a li'l bit. It may help.
    FASB Eases Fair-Value Rules Amid Lawmaker Pressure March 30 (Bloomberg) -- Four days after U.S. lawmakers berated Financial Accounting Standards Board Chairman Robert Herz and threatened to take rulemaking out of his hands, FASB proposed an overhaul of fair-value accounting that may improve profits at banks such as Citigroup Inc. by more than 20 percent. 20 f'ing percent....... what, a li'l hicup was it.


    This is the bloke.
    Financial Accounting Standards Board Chairman Robert Herz.
    A faceless, unaccountable, bean cruncher who screwed up the WORLD.
    You may find he and his clan, charming affable types until the Gobbledeegook starts up and the Mumbo jumbo is unleashed.
    This is the most dangerous man in the world today. He has defrauded billions of people and is being feted by world leaders. Hang the stupid little funckwad!

    This man, single handedly destroyed the world economy and is still getting away with blaming everyone else!

    Robert Herz you Ah so! Crawl away and die somewhere. Any gutter will do.
    Last edited by herosrest; 04-02-2009 at 05:20 PM.

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