The
Mark-to-Market accounting procedure, on which I commented in my recent
blogs on financial meltdown, helped cause global
damage.
This
created havoc among small and large investors in pension and
institutional funds, who look to the long-term and are not interested
in daily or even weekly pricing. All true investors got run over by
this mark-to-market onslaught.
I
have always felt that there are two kinds of investors;.traders who
need daily quotes which can be unrealistic. And long-term investors
who get misled and potentially hurt, if they act on those abhorrent,
volatile short-term quotes.
The
financial meltdown was certainly an error by government appointed
“experts” thinking too short-term and subject, therefore, to
panic–driven decisions.(See the Earl J. Weinreb NewsHole®
comments.).
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