Smoke And Mirrors Propel Market Gains

Ken Silverstein, Harper's Magazine's Washington, D.C. bureau chief and blogger on the ever-valuable Washington Bablyon, pointed out the probably uncomfortable fact that, while he doesn't say so explicitly, the "rally" on Wall Street at week's end was more the result of hanky-panky with the accounting rules than it was any indication of the changing (or improving?) situation in the system:

Where’s the Financial Transparency Obama Promised?
This is an important story from Investors Business Daily:

Accounting rule-makers on Thursday did all they could to make the nation’s credit nightmare go away — or at least go back into the closet — sending stocks higher. The Financial Accounting Standards Board, under heavy pressure from politicians and financial firms, will let companies use “significant” judgment in valuing some assets, notably mortgage securities, rather than relying on current illiquid market prices.

FASB OK’d changes that will also boost capital on battered bank balance sheets. Big U.S. banks are expected to get a Q1 earnings lift of 20% or more from the new rules.

Do I see a bubble forming? This looks like the same bogus accunting garbage that helped create the current disaster.

Lipstick, meet the fucking pigs...

I feel absolutely no embarrassment in letting his typo stand...

And, oh, by the way: Larry Summers? Fuck him!