Mark to Market Accounting

The Mark to Market Accounting calculates the value of financial instruments to expire at some point in the future at current prices. This has been used in oil barrels when it seems that the quantity is running low to allocate dollar amounts based on future expected returns and rates. It has also been used in several accounting scandels and bank frauds such as Enron to generate paper returns.

http://en.wikipedia.org/wiki/Mark-to-market

Madoff pleads guilty

Today, financier Bernie Madoff plead guilty to all 11 counts of operating a Ponzi scheme. He admitted to running the scheme and "knew this day would come." He could face a maximum of 150 years in jail.

http://money.cnn.com/2009/03/12/news/newsmakers/madoff_courtappearance/index.htm

New Direction for Finance Today

As we are in special economic and financial times, I am taking this blog in a new direction. Rather than providing general overviews of current finacial events and explaining (or even not explaining) terms that everyone may or may not know, I am deciding to post headlines and terms in short bursts and provide links to articles that I feel accurately represent events and terms. This way as little as possible is lost in translation and as much as possible is covered.

California's Budget (or lack thereof)

It would seem that in the midst of the country's passing of the stimulus package, the state of California still can't seem to pass its own budget, even through threats of job losses, paycuts, and cut hours. Reuters reported that state legislators were unable to pass a budget and now the state will face severe job losses as the economy keeps losing ground.

http://www.reuters.com/article/politicsNews/idUSTRE51G0J420090217

$787b Economic Recovery Package

President Obama signed into effect a new $787 billion Economic Rovery Package known as American Recovery and Reinvestment Act. After much debate questions are still being asked as to how we will know that it's working. One main way will be the increase in consumer and commercial spending and people get the confidence to go out and spend money.

http://money.cnn.com/2009/02/17/news/economy/obama_stimulus_meas_success/index.htm?postversion=2009021713

President Obama's Economic Recovery Plan

President Obama described his discontent with the state of jobs in America today and his plans for the economy and how he believes it can be fixed. He followed his speech with a Q&A session.


Speech:
http://www.cnbc.com/id/15840232?video=1028137668

Q&A Session:
http://www.cnbc.com/id/15840232?video=1028243476

Stimulus Package

It seems like President Obama's stimulus package, after much debate seems like it will be passed for about $700b. Though it seems lately that even after much debate, more debate is still done as someone has an unusual question that causes everyone to panic and make a decision that takes a turn for the worse. The President though seems to speak his mind and is saying that the bill needs to be passed, it needs transparency, and it needs to be done soon as the economy seems to on a downhill slide and more and more people are losing their jobs every week.