Chastened after seeing what havoc telling the truth played on the economy, the Financial Accounting Standards Board has decided that smoke and mirrors is better after all:
The Financial Accounting Standards Board agreed to allow companies to use their own judgment to a greater extent in determining the "fair value" of their assets. The board also made it easier for companies to avoid having to take impairment charges when they suffer losses on their investments.
This will really help our beleaguered banks!
But you might contrast this, boys and girls, to what kind of a response you would get if you went in to borrow money against your house and “estimated” its value as 50% more than anybody would pay for it in the current market. If they didn’t haul you away in chains, you’d at least get thrown out of the bank.
Update: The tag should have read marked-to-market accounting rules” of course.