Was this rule change a bad thing? Most definitely. But the problems already existed prior to the rule change, because the larger problem of the bad accounting existed before the rule change as well.
I've read a few other people claiming that the whole mark-to-model system was broken, because the models were providing completely unrealistic valuations of the assets they tracked. Your previous comment before this one seemed to suggest that mark-to-model has its place in the world of investing, and that it has been inappropriately demonized. If you have the time, can you provide your thoughts on the claims that mark-to-model valuations have a risk of being wildly inaccurate, and whether that risk is overblown.
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Was this rule change a bad thing? Most definitely. But the problems already existed prior to the rule change, because the larger problem of the bad accounting existed before the rule change as well.
I've read a few other people claiming that the whole mark-to-model system was broken, because the models were providing completely unrealistic valuations of the assets they tracked. Your previous comment before this one seemed to suggest that mark-to-model has its place in the world of investing, and that it has been inappropriately demonized. If you have the time, can you provide your thoughts on the claims that mark-to-model valuations have a risk of being wildly inaccurate, and whether that risk is overblown.