Mark to fantasy accounting after 2009 basically what you think the asset is worth. This changed all those losses into incredible profits, but still no cash for those assets just on papaer.
If we had mark to mark accounting today 75% of the publically traded companies would of went under or be bankrupt.
and as for XOM they do haveto borrow $13.5 billion to pay their dividend because of Mark to fantasy accounting.
Japan, europe, south america, every place on this planet GDP has shrank in 2014 except the US We say it grew 3 percent a quarter now ask yourself why? because we have mark to fantasy accounty.
The FASB decision will allow banks use internal models instead of market prices and allow them to take into account the cash flow of securities. As Robert Willens, a former managing director at Lehman Brothers Holdings Inc., who now runs his own tax and accounting advisory firm in New York, explained to Bloomberg, the change could boost bank industry earnings by 100 percent.
"mark-to-fantasy" and deemed the decision to relax the rules nothing more than pandering - Bottom line, if you were to go back to mark to market accounting 75% of the companies publically traded are bankrupt! We are almost there fellas.
VLO cash on hand 2009 mark to market accounting $.85
VLO cash on hand 2010 mark to fantasy accounting $5.85
VLO cash on hand today is $6.89 per share under the new accounting guidlines.
Real estate and property has almost doubled in value on their balance sheet and debt has increased by 6 billion or doubled
Cash on hand went from 1 billion in 2009 to 4 billion today
But the balance sheet grew by 12 billion
mark to fantasy accounting. Every Publically traded company is in the same position. The FED is going to hand back the 5 trillion in bad debt to those that own it. The FEd is going to raise rates based on Mark to fantasy accounting. ROFLMAO and that will be the time to buy. Eventuallyunder mark to fantasy accounting instead of mark to market accounting you run out of CASH!
Exxon’s total debt-to-equity (D/E) ratio fell sharply in FY12 after the company retired short-term debt worth $3.76 billion, but has since risen to 12.1% – a five-year high for the company. The increase came because the company raised over $9.4 billion in short-term debt to fund dividends and buybacks and offset the decline in free cash flows.
Remember we are no longer deal inning in mark to mark accounting
Under the new system mark to fantasy
Deflation, higher interest rates and less revenue makes what the FED did look stupid
Long term hold? Not a chance
That 5 trillion worth of debt will rip this market a new one
That 5 trillion could now be 10 trillion according to mark to fantasy rules
In 2009 JPM had zero cash per share
In 2014 they still have zero cash per share
With it without the accounting change
The problem can only go away if you pay off the debt
There was no recovery
There was a change in accounting
We went to mark to fantasy
Why won't the banks relax mortgage conditions
Because your home is not worth it
Your home is worth what it was in 2009
Any business owner knows he's being crushed right now
Great opportunity for the shorts
Like I said it is all about credit rating
Moodys has it right.......if you cant pay your debt market to fantasy does not work
(DEFLATION destroys the concept opf mark to fantasy) Lets see the new accou8ing system after this crash
They will tell you earnings? why should earnings matter you can still trade stocks roflmao
Instead of creating new money through additional lending, the Fed’s QE policies have greatly expanded the amount of excess reserves in the banking system. (See Chart 2.) In other words, banks have mostly decided to hold onto the cash that the Fed gave them when it executed all those securities purchases. Consequently, it is rather difficult to argue that these Fed policies have done much to expand the economy
In fact, by the Fed’s own admission, its expansionary programs have not sufficiently boosted economic activity. The Fed would not have implemented successive rounds of QE if the previous rounds had worked, and it would not have implemented the first QE program if more traditional open-market operations had worked. The reason that banks are holding on to all these excess reserves is debatable, but the fact that they are holding them highlights the limits of monetary policy.
Controversy arises because those assets—including the MBS frequently referred to as “toxic” assets—have not simply disappeared. As seen on Chart 1, these assets are now on the Federal Reserve’s balance sheet. Put differently, the Fed now holds trillions of dollars in debt of two insolvent companies as well as the same securities that led to the 2008 financial crisis.
The FED wants these assets off their books
The final backstop for the Fed is the U.S. taxpayer, and the only time a capital injection would be necessary is if the Fed can no longer “print” money, either due to a general lack of confidence, too much inflation, or a combination of the two. So far, the Fed’s expansionary policies have not created the rapid inflation that some predicted—but how much longer that can continue without a financial crisis as between 2007 and 2009 is anyone’s guess. It makes sense as an insurance policy against another massive Fed-sponsored bubble, as in 1999 and 2007, to rein in money to reduce the probability of another financial crisis.
If continental resources goes down to zero Valero is going to minus zero
What don't you get
Watch how every company restates before the DOJ gets to their door step
Then watch the market turn downward
Brent crude traded near the lowest closing level in four days as an official gauge from China showed factory output slowed in the world’s second-largest oil consumer. West Texas Intermediate was steady in New York.
Stupid stupid stupid
You are just stupid