The Mark-to-Market accounting procedure on which I commented in my recent blogs and financial meltdown that occurred as a result caused global damage.
This created havoc among all other small and large investors with pension and institutional funds, who look to the long-term and are not interested in daily or even weekly pricing. All true investors got run over by this mark-to-market onslaught.
I have always felt that there are two kinds of investors; traders who need daily quotes which can be unrealistic. And long-term investors who get misled and potentially hurt, if they act on those abhorrent, volatile short-term quotes.
The financial meltdown was certainly an error by government-appointee “experts” thinking too short-term and subject, therefore, to panic–driven decisions.
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