Mark Your Calendar for the 2010 Implosion

At its board meeting earlier today, FASB voted today to have a single effective date for its proposed amendments to FAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, and FIN 46R, Consolidation of Variable Interest Entities, which impact off-balance sheet treatment of securitizations, including mortgage and other securitizations.

We wrote yesterday that the FASB was under intense pressure to delay implementing its proposed rule changes that would provide real transparency in financial accounting and would expose $5 to $10 Trillion in bogus assets to the light of day.

See http://thebestmoneyguy.blogspot.com/2008/07/plunge-protectors-united-create-another.html

The effective date agreed to today by the FASB board would be: fiscal years beginning after Nov. 15, 2009.

(Thus, for calendar year-end companies, the effective date is essentially 2010, a year later than the initial half of the ‘dual effective date’ originally proposed, which would have been 2009 - with a one year deferral for existing QSPEs to 2010.)

Nice move folks. Let's hide the garbage under the rug for another two years and hope that it will quietly go away.

Can't anyone on Wall Street or in Washington D.C. tell the truth? And what is supposed to happen before 2010 to fix this $5 to $10 trillion accounting deception? At some point this junk is going to bubble to the top.

In the mean time, enjoy the Plunge Protection Team's inspired market rallies.

The Best Money Guy.

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