Many people are wondering when this recession/depression will end. Well the waiting is over.

Tomorrow a group of accountants will vote on a new accounting rule that will end the financial crisis. This rule, called FAS 157-e, permits banks to make up the value of assets they carry on their books that nobody wants to buy. By letting banks put whatever value they choose on these assets, they will no longer need to tell investors just how badly those assets have deteriorated.

This is obviously fantastic news for the global economy. We can now get back the $12.8 trillion we've spent bailing out the bad bets of banks and insurance companies. That's because the toxic waste that has so far caused them to take $3 trillion in write-offs is no longer toxic. In fact, the banks can mark those assets just as high as they want -- taking a profit by valuing them at, say, $1.20 instead of the 60 cents at which they're currently priced on their books. This increase in value will instantaneously give the banks as much capital as they want.

Continue reading New accounting rule to end financial crisis: April Fool's?

New accounting rule to end financial crisis: April Fool's? originally appeared on BloggingStocks on Wed, 01 Apr 2009 12:30:00 EST. Please see our terms for use of feeds.