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Post by jeffolie on Mar 29, 2008 15:49:54 GMT -6
SEC tells corporations to lie & pretend they have good financials. The Securities and Exchange Commission sent out a Letter On Fair Value Measurements, (Financial Accounting Standards No. 157) that is tantamount to being an open invitation to lie. In the end all this does is create more mistrust and suspicion about what is real and what is imaginary. Under SFAS 157, it is appropriate for you to consider actual market prices, or observable inputs, even when the market is less liquid than historical market volumes, unless those prices are the result of a forced liquidation or distress sale. Only when actual market prices, or relevant observable inputs, are not available is it appropriate for you to use unobservable inputs which reflect your assumptions of what market participants would use in pricing the asset or liability.” The lying is in applying the language of: "...unless those prices are the result of a forced liquidation or distress sale." If there was a futures market on pretending, "pretending futures" would be a screaming buy. globaleconomicanalysis.blogspot.com/2008/03/sec-openly-invites-corporations-to-lie.html
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Post by unlawflcombatnt on Mar 29, 2008 18:21:26 GMT -6
This is another way the government has concocted to protecting the richest Corporate scumbags from becoming less rich. Since when does the market price from a "forced sale" not count. When Gold or Treasuries are sold in "forced sales" their value goes down, and buyers can get the same thing for less money. But for some reason, the same doesn't apply to the "forced sale" of completely worthless paper financial instruments. Below is a link to a sample letter from the SEC. www.sec.gov/divisions/corpfin/guidance/fairvalueltr0308.htm
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