One Thing Right

From My Husband's Post on NRO - The Corner...

Mark-to-Market Suspension Monday?

The Dow is heading up, and it's not because Senatorial opposition to the stimulus is weakening. It started with the news yesterday that the Administration is on the verge of getting one huge thing right and will announce a suspension of certain mark-to-market rules on Monday. This will instantly reduce the risk for financial firms with bad assets on their books from future paper losses that could adversely affect their regulatory solvency. As we at CEI have been saying from Day One of the financial mess, there is no easier relief measure around. To its very great credit, the Obama administration appears to have realized this. Obama and Geithner actually deserve applause for this.

However, it seems likely that the significant Dow rally that will probably result will be spun otherwise, as market support for the stimulus. Ironically, the best way to stop them getting away with this spin may well be to praise them extravagantly for something they've done right.