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Friday, April 3, 2009

Airelon's Holy Gospel Hour: Mark to Madness Accounting Methods (VIDEO)

"I'm not upset that you lied to me, I'm upset that from now on I can't believe you" - Friedrich Nietzsche

If you're not among those that have followed me for a while? From time to time, I'm known for a bit of an "tirade" of the lunacy of the world, which I call "Airelon's 'Holy' Gospel Hour"

Mark to "model" accounting? That's the big news of yesterday. We're going to get rid of that pesky 'mark to market' accounting method, and we're going to use a mark to "model" method?

ARE YOU KIDDING ME? What ?!?!

With contracts that are not standardized, how do we determine what is "distressed"? We're supposed to trust the morons that got us in this mess?

We're supposed to trust the same people that defend 'brilliant models' of "Credit Default Swaps", which have proven themselves to be nothing more than an insurance credit scam! It's not a metric measure of trust within the system. If you don't have the reserves to pay for the swap, then it's nothing more than a scam!

(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click this link to view the entry ...)



So now? Now? Now accounting methods become more akin to a Salvador Dali painting, than anything that we might refer to as, gee ... reality.

Your New Account Methods:


Now the G-20 meets, and I kid you not, the headline reads across CNN:

"G-20 Leaders Meet to Save the World"

Again, those are CNN's words, not mine.

So what do these "leaders" decide? Do they decide we need to get OTC CDO Derivatives on an exchange? Do they decide that credit default swaps need regulated like any other insurance contract?

Of course not! They decide to regulate ... "hedge funds"?

WHAT ??!!

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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