Stock markets are up markedly after word spread the last few days that we would finally — finally — get some relief from mark-to-market, or “fair value,” accounting. The Financial Accounting Standards Board today, in a hearing before the House Finance Committee, promised new guidance on FAS 157 in the next few weeks. Many financial stocks are up 50-100% or more since Warren Buffett and many lawmakers commented on the need for reform at the start of the week.
The real credit, however, goes to Brian Wesbury, who’s been pounding away and comments on video here. To Steve Forbes, with his bold Wall Street Journal op-ed that opened the floodgates on the matter last week. And to David Malpass, who identified the mark-to-market problem over a year ago in early 2008.
The S&P 500 is up more than 10% since mark-to-market reform looked possible.
