With the volatility which we are seeing lately, it is premature to manipulate markets with changing policies and procedures. As is, markets are volatile and fragile. Weighted average price is one option.
Altering mark-to-market accounting rules would bring more opacity to the financial system, said Nassim Taleb, “The Black Swan” author.
“It’s exactly like how a thermometer makes a patient look more sick,” he said in a CNBC interview. “Eliminating the mark-to-market is exactly like putting your head in the sand.”
Rather than taxpayers propping up large banks, Taleb said, the hedge fund model should be followed.
“Some go bust, some do okay, some have problems,” he said. “We don’t care. It’s their problem. It’s not society’s problem.”
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