Whitney and the witless

At some point back prior to the squints relaxing mark-to-market Meredith Whitney commented to the effect, 'Why would banks want to repeal mark-to-market? They want to get all the upside when assets appreciate.'

Please keep that in mind when the FASB mark-to-market shrimpfest is over, a formal proposal from the board on the matter isn't expected until late 2009 or early next year.

Implementation of any proposed rule probably won't hit until the end of 2010, perhaps 2011.

Banksters will fight it tooth and nail and relent only if appreciating assets allow them to 'write-up'. Since the Federales are controlling about half the means of production, this 'truth in advertising' will ironically become a strong plank in their reflation plan.

In sum, socializing the downside and piratizing the upside. D'ahr.