You may be wondering what this FASB thing is. It’s a rule that accountants have to abide by. Which because of a change by the folks who administer all of the rules means more dirt is swept under the rug.
You’ve probably heard the term, “mark to market.” What it basically means is that the assets on the books of the banks have to be based upon what they are actually worth. If you’ve bought or sold a house then you know the realtors look at comparable sales to figure out how much your house should be priced at. Because the rule was changed banks don’t have to mark the assets on their balance sheets to what they are worth, but to some sort of mythological value what the asset may be worth in a perfect marketplace.
As an accountant and as an investor I don’t like it. The banks are in the same shape now as before the rule change, yet the bank stocks go up. It’s paper, not some positive increase based upon efficiency or operations.
Make no mistake, cash makes Washington, DC turn.
The FASB approval comes after an effective lobbying campaign on Capitol Hill by the American Bankers Association and other interest groups. Roughly 800 bankers gathered in Washington earlier this week, in part, to meet and press lawmakers to send a message to FASB that the accounting rules needed to change.
Jeesh man, first the congress people give the banks TARP then the bankers give money back to the congress people as campaign donations. Then the banks are being weighed down by toxic debt and the bankers and their proxies basically go protest on the Hill and lo n’ behold the FASB rules get changed so the banks can mark the left side of their balance sheets to unrealistic values.This is getting truly bizarre.
Anyways, what’s left to do but,
GET OUTSIDE EVERYDAY!!
Nice day, huh? A week of rain is in the forecast now. I planted Sunday to be sure to get the benefit of the rain. I had black plastic down for a couple of weeks to warm the soil. I planted radishes, mesclun mix, spinach, arugula and peas. I’m a little later then I wanted. The way I grow lettuce is to heavily plant a 3*3 square. I can reach into it from all sides. Then I cut the lettuce with a pair of scissors when its 3-4 inches tall. I basically give it a haircut and eat the baby lettuce. It’ll regrow. A couple of weeks later I’ll plant another box. My lettuce will bolt later in the season. I’ll also work a little all purpose organic fertilizer into the top couple of inches of soil. Happy growing.