Just when you thought that the bloodbath on the mortgage market was over, something new shows up. This time, reports the Mortgage Lender Implpde-O-Meter, changes to accounting rules could mean another $5 trillion back on the balance sheets of mortgage lenders:
Accounting changes could force US banks to take thousands of billions of dollars back on to their balance sheets in the coming months in a move that is likely to curb further their lending and could push them into new capital raisings, analysts have warned.
It appears that the mortgage market crisis could be far from over. But my question is this: Why were accounting rules so messed up that $5 trillion could be "hidden" (or shifted about or whatever) in the first place? And why can't I do that with my debt?
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