PMZBuzz

The financial crisis that we are in today was not caused by mortgages or housing, although they were both catalysts. The real reason was an accounting rule called “Mark to Market” also known as FASB 157. Few people have a strong grasp of this rule, and even those who do, have a tough time explaining it on air or on television due to time restrictions.

Why does “Mark to Market” exist?

Let’s go back to the Stock Market crash, which occurred between 2000 and 2002. With the S&P 500 down nearly 49% and the NASDAQ down 71%, many people lost much of their life savings and they were very angry. Companies like Enron and Arthur Anderson were able to find ways to make their books look more attractive, which was reflected in an artificially inflated price. Both the public and Congress had a call for more transparency in business and hastened the passage of “Mark to Market” Accounting. This is the notion that all assets should be valued as if they were sold on a daily basis…

To read the rest of my written article, please visit:

http://www.loanapproval411.com/upload/client514/pdf20090127225838.pdf

Sincerely and respectfully,

Daniel A. Sosa

PMZ Mortgage Consultant

Office: 209-472-2010 x4716

Cell: 209-298-8017

Email: dsosa@pmzloans.com

Website: www.loanapproval411.com