We think a suspension of mark-to-market accounting rules is looking more likely every day. It’s not because it will do any good — basically it rests on the dream that just changing the books can change reality — but because it’s the last bullet left in the gun. Theyv’e tried bailouts and stimuli and TALFs and TARPs and short-selling suspensions and extra-wide discount windows and super SIVs. This is what they have left.
Now Reuters reports that the House is set to take up the issue in a hearing tentatively scheduled for next week. After that it’s probably a matter of if, not when they make the change.