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New terms to disguise a bank robbery.Here is a good explanation of what is really going on; <a class="user" href="http://market-ticker.denninger.net/archives/598-The-Mark-To-Model-Lie.html&quot;&gt;http://market-ticker.denninger.net/archives/598-Th ...</a>"The latest load of nonsense is that "mark to market" accounting is claimed to be the problem with our banks.Let's think about this folks, because there are two sides to every trade, and for every loser there is a winner.Let's say that I'm "Bill's Bank and Mortgage" (BBM) and I've got a lot of this so-called "toxic paper" that MTM accounting is killing. That is, I am damn sure this paper is worth par (100) while today, at best, I can sell it in the market for forty cents (0.40); that is, I have an un-realized 60% loss.What is the logical thing for me to do as BBM, assuming that I'm really sure that I'm right?Why it is to go into the market and buy as much of this paper as I can, right? I scrape, scrabble and scrounge to come up with either money or long-term (10ish year) credit and use it to buy every piece of that so-called "trash" as I can find.When (not if, remember, I'm sure its really worth par) the values come back I will make an unbelievable amount of money.So let me ask all those who think we should abandon MTM accounting - why isn't this happening? Why isn't Warren Buffett, the "smartest guy in the room", doing exactly this? Why isn't PIMCO? Why isn't Wilbur Ross? Why is the roughly $3 trillion in cash sitting in hedge funds - all uncommitted cash - sitting there, instead of buying every piece of this paper it can find?The truth?MTM account is likely optimistic, not pessimistic.Never listen to what people say, unless they are backing their mouth with their wallet. Those who claim that MTM accounting is somehow making banks "insolvent" when they should only be "illiquid" need to have their heads examined.More than $3 trillion sitting in cash, in hedge funds, and none of these guys agree with the mouth-breathers in the media - and in the banks - who claim that this is all a "mark to market" problem? None of them are out there buying this crap. But $700 billion - one fifth - of the amount sitting in these hedge funds, all funded by the taxpayer (with borrowed money no less!) is going to make it all better?Being a Congressional representative obviously does not require a brain.There are, however, a few representatives that have one. Brad Sherman, D-CA, for one. Take a listen."

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