Megan McArdle explains mark-to-market changes
very nicely. The change by the Financial Accounting Standards Board in how banks can value illiquid securities is basically a back-door way of relaxing capital requirements. Sez Megan:
A perfect regulator in an ideal market would relax capital requirements in bad times, and raise them in good times. The actual regulators we have, however, are terrified of spooking the markets if they do so--and more importantly, terrified of the all-out political war that would follow. So we lower capital requirements in good times, when all that capital seems like an untouched gold mine, and leave them stat, or raise them, when everything's going to hell. FASB, which is pretty insulated from political pressure, is doing what it can to correct that problem.







Comments
Hi,
It’s a well know fact that stock market is affected by elections and now Election 2009 are about to begin in some time so for sure they will also have some sort of impact on Indian stock market.
One can find complete report on Impact of elections on stock market
Apart from Elections another major concern for Indian stock market is Inflation. There was a time when we were concerned about rising inflation but now we are conscious about this falling inflation.
So big question is what should day traders and investors do?
Frankly speaking day traders are least concerned about the market they simply follow trend and make maximum out of it. But yes investors should keep there portfolio light till the elections get over.
Please feel free to contact us for any query.
Regards
SHARETIPSINFO TEAM
Posted by: sharetipsinfo | April 7, 2009 6:25 AM
Hi,
During elections time stock market act very weird. One has to be very careful while doing trading and investments in Indian stock market .
If you have any doubt please feel free to contact us.
Regards
Regards
SHARETIPSINFO TEAM
Posted by: sharetipsinfo | May 29, 2009 6:05 AM