Financial Accounting Standards Board (FASB)
April 2nd will be a huge day for the financial systems in our country. FASB is set to announce their decision to modify the current mark to market accounting principles and allow cash flow analysis to determine the value of financial assets.
If you are unfamiliar with mark to market please see our previous post here. Or Wikipedia has a great article half way down on the page, click here.
The current stock market has rallied without the loss coming from the mortgage bonds. The stock market rally might be fueled by speculation of the change in mark to market accounting. The hopeful change will free balance sheets for the banks to allow liquidity for lending.
Stay tuned for updates next week!!! We will also post on twitter “themortgagereel“