Comments on: Cash Flow Accounting Isn’t So Terrible, Really http://www.peridotcapitalist.com/2009/03/cash-flow-accounting-isnt-so-terrible-really.html Stock market and investing blog published by Chad Brand, Founder/President of Peridot Capital Sat, 11 Feb 2012 23:26:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: shepherd http://www.peridotcapitalist.com/2009/03/cash-flow-accounting-isnt-so-terrible-really.html/comment-page-1#comment-1416 shepherd Fri, 20 Mar 2009 14:03:06 +0000 http://www.peridotcapitalist.com/?p=1252#comment-1416 Chad, Point well taken. An additional point about mark-to-market is that it often exaggerates good in good times and bad in bad. The real estate bubble occurred in a time of mark-to-market, where it offered little protection or transparency. Cash flow analysis of CDOs--which no one bothered to do--would have revealed a different picture than what ratings agencies and the markets assumed. Chad,

Point well taken. An additional point about mark-to-market is that it often exaggerates good in good times and bad in bad. The real estate bubble occurred in a time of mark-to-market, where it offered little protection or transparency. Cash flow analysis of CDOs–which no one bothered to do–would have revealed a different picture than what ratings agencies and the markets assumed.

]]> By: Topics about Banking » Cash Flow Accounting Isn’t So Terrible, Really | The Peridot … http://www.peridotcapitalist.com/2009/03/cash-flow-accounting-isnt-so-terrible-really.html/comment-page-1#comment-1415 Topics about Banking » Cash Flow Accounting Isn’t So Terrible, Really | The Peridot … Thu, 19 Mar 2009 16:53:28 +0000 http://www.peridotcapitalist.com/?p=1252#comment-1415 [...] Chad Brand created an interesting post today on Cash Flow Accounting Isnâ [...] [...] Chad Brand created an interesting post today on Cash Flow Accounting Isnâ [...]

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