Now we get to the fourth and final domino: between late 2000 and 2002, major failures of companies like Enron and WorldCom led Congress to pass the Sarbanes-Oxley Act. Part of the Act was to force companies to use “fair value accounting” — to carry certain securities at what they were currently worth, instead of book value.
In November 2007, the Financial Accounting Standards Board codified this with FAS 157, which effectively imposed an accounting rule called “mark-to-market accounting.”
Well, guess what? Now the Democrats have all the cover they need to add back the ACORN, and union control, and any pork they want, and pass it on a party-line vote.
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