Mark To Market Madness

Today the accounting cartel finally made a substantive change in the mark to market rule that they put in place back in 2007. The change they made then had unintended consequences indeed.
The financial system was being destroyed by that rule change. All the other suspects were not really the cause. There have always been bubbles and bad loans. This time really was different, becaused of the mark to market rule.

Hard to believe but true.

Try this analogy.
The world economy is like an organism. The rules are like the DNA. The rulemakers are like mad scientists tinkering with things that should be left to GOD.
One small change in an organism's DNA can lead to hundreds of consequences.
Usually a mutation, any mutation, actually makes the organism less fit.
Many mutations are deadly.

The rule change they put in was of the deadly kind. It would have eventually killed the entire economy. It is fortunate that the rule has been changed again. Although the best would be to just go right back to the old rule. We must hope that the new rule today will work for our good.

It is hard for people to believe or understand that a simple rule change could kill an economy. But this is one experiment that has cost trillions of dollars.
Now we can look forward to a recovery.