#OT# Spondulicks about to go back on the banks books as capital

If the parts don't meet the specs, then change the specs [or the gages].....

Like Col. Jessep said in "A few Good Men," "You can't handle the truth."

Although Ed doesn't like the term, the banks are about to be allowed to put their "spodulicks" back on the books. The "assets" are the same CDO crap that is currently selling for 10 to 15 cents on the dollar [and will be for the foreseeable future] but the banks will get to write this back up to face value because of the elimination of the Sarbanes-Oxley "mark to market" requirement, at least in the banking sector [to be replaced with mark to myth or "wet dream"].

============ Friday, 6 Mar 2009 UPDATE: Stocks Could Skyrocket After March 12th Posted By: Lee Brodie Topics:Stock Market | Stock Picks Sectors:Financial Services Investors such as Jon Najarian are hopeful that stocks could soar next week. They say we could see an explosion to the upside after a meeting scheduled for March 12th.

On that date, a House financial services subcommittee plans a hearing on mark-to-market accounting rules, which have been blamed for forcing banks to report billions of dollars in write-downs.

Karen Finerman has long been an advocate of putting these rules on hiatus for a while and ?letting the banks breathe.?

If that meeting results in the government relaxing mark-to-market rules, optionMonster Jon Najarian thinks the stock market could explode. On Wednesday he told us, ?if the government relaxes mark-to-market for 12 to 18 months you could see financials move

100% in a matter of hours.?

And he went on to say, ?In fact, I hope you?ll replay the soundbite because if the government relaxes mark-to-market accounting a number of banks stocks will be unbelievable values at these levels.?

-----------------

For all you "short sale" fans, here is another example of how the regulatory agencies are stepping on the economic/fiscal brakes and gas at the same time see

Which shows how the SEC is again allowing, even promoting, "short sales" with no need to locate or borrow stock with a 3:1 leverage [33% margin requirement]

And we wonder why the engine is making funny noises and the smoke is billowing out from under the car.....

Unka' George [George McDuffee]

------------------------------------------- He that will not apply new remedies, must expect new evils: for Time is the greatest innovator: and if Time, of course, alter things to the worse, and wisdom and counsel shall not alter them to the better, what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman. Essays, "Of Innovations" (1597-1625).