A few weeks ago I attended a class where Barry Habib spoke. According to the many lenders I know, he is the premier expert on the lending industry. Many lenders look to his weekly reports on how to advise their clients on the all important decision – when to lock your loan.
So when the opportunity presented itself to hear him speak, I knew it would be informative. Barry spoke a lot about “Mark to Market” and how he feels it has negatively effected the banking industry.
I was intrigued when just a few days later on March 10th 2009… Fed Chairmen Bernanke had this to say: “Given what is going on in the world, we should look to identify the weak points of mark-to-market and try and make some improvements on a more expeditious basis,” Bernanke said in response to an audience question after a speech to the Council on Foreign Relations. “We need to do a lot more to provide guidance to the financial institutions and to the investors about what are reasonable ways to address valuation of assets” in illiquid markets, he said.
Barry has produced a great video which explains “mark to market”. If this financial mess has got you concerned, or you just want to be better educated on the subject, you can watch it here: