thanks for the link. This guy is right in his criticism although so far I believe the FASB has cocked a snook to the banks. Let’s see how this develops.

The discussion really goes into details, for instance here:
“However, once the garbage FASB standards become prevalent, their entire impact can be ignored by avoiding the Net Income line altogether and instead looking at Comprehensive Income which differs from Net Income by an adjustment line known as Accumulated Other Comprehensive Income (AOCI).”
http://zerohedge.blogspot.com/2009/03/brutalizing-fasbs-attempts-at.html
A unilateral fundamental change in the accounting rules would lead to a backlash from Asia and Europe, so changing the line items is perfect solution to political pressure.

danny posted this link in his newsletter which I think describes the situation quite well:
http://thehousingtimebomb.blogspot.com/2009/03/i-smell-rat.html
“Something tells me the government saw some economic data that has scared the living daylights out of them.”
This to be linked with the need to close the month and the quarter as positive as possible.

GD I ended when the income differentials in society had contracted significantly. If I look at recent actions the powers that are do not understand the power of the underlying dynamic so it will take longer and get uglier until this is resolved. Though I’ll miss the sound of I-Bankers’ Porsches racing to work in the morning.

Watching an interview on the nightly news I was struck by the misconception of the problem. Apparently we still think that if the banks would just start lending all will be well. Talk about fighting yesterday’s battle.

http://business.timesonline.co.uk/tol/business/economics/article5961065.ece