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Originally Posted by Snake Doctor
I just figured that since Obama was to blame for the 300 point "crash",(according to Splum) that Splum would be in here congratulating him on his outstanding work of making the Dow rise 1000 points since then.
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Obama had nothing to do with the bump today (except that he was out of the country) - it was entirely do to changes in accounting regulations.
and granted, while he cannot be blamed entirely for the drop, his rhetoric going back for the past 14 months did not help investor sentiment.
But on even more important news, the jobless rate continues to climb at alarming rates. Anothere 670,000 new jobless claims LAST WEEK!
There is a saying in the markets, 'beware of a the dead cat bounce' meaning, even a dead cat will bounce if it falls far enough - but that doesn't change the state fo the cat, its still dead.
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WASHINGTON--U.S. accounting rulemakers on Thursday agreed to make adjustments to its proposal to change mark-to-market accounting rules concerning when transactions would be considered distressed.
The Financial Accounting Standards Board said its proposed changes would take effect in the second quarter for most U.S. companies, but early adoption would be allowed for most companies' first quarter.
The board, at a meeting in Norwalk, Connecticut, said it would remove a presumption in its original proposal that would have allowed all transactions in an inactive market to be considered distressed unless proven otherwise. It said that particular language could have had unintended consequences.
FASB also said the objective of mark-to-market, or fair value accounting, in inactive markets would be to determine what an asset could fetch in an "orderly" transaction between market participants. It said an "orderly" transaction would not include distressed transactions or fire-sales.
The board is continuing discussions on the rule and another rule on other-than-temporary impairment issues that affect when writedowns have to be taken on financial assets that have suffered a decline in value.