The children’s rhyme about ‘rain’ can now be applied to Other Than Temporary Impairment (OTTI). Under specific direction from Congress, FASB has modified both GAAP accounting’s approach to measuring fair value as well as OTTI. As always, the devil is in the details and these are still proposals, subject to finalization. But the trend is.
Currently we have an approach to solving “The Greatest Delveraging in the History of the World” that reminds one of a dysfunctional doctor’s office. The doctors are financial experts ‘behind the scenes,’ trying to work on solving the problem, while the receptionist is much like the politicians. The receptionist has an idea about different procedures, but doesn’t fully understand.
“These guys’ companies were on a Sherman’s March through their companies, financed by our 401ks, and all the incentives of their companies were for short term profit. And they burned the f–ing house down with our money and walked away rich as hell, and you guys knew that that was going on.” – John Stewart,.
The 16th annual AM Best Review/Preview conference just wrapped up. As usual, a ‘must see’ event for AM Best rated companies and a beautiful location (Westin Kierland, Scotttsdale, AZ). Unfortunately, that beauty contrasted with the ugliness in the investment arena discussed there. I was unable to go to all of the sessions. However, the general.