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[0:00] ..." Japanese sold in the WBZ newsroom many investors are wondering how the stock market could possibly go into its biggest deals than ever this week. In accounting terms it's all about something called mark to market accounting. How to determine a fair value of an asset when the market is falling apart and there's really no market. -- G Peter Wilson at Boston College tells me banks and financial institutions have been stymied by their inability to value their investments mortgages and other holdings so assets are being sold. At fire sale"...
[0:41] ..." price at which -- itself contending good times when there's plenty of bench mark available. As benchmark prices because people were treating CDs. Collateralized debt obligations return. Which are very difficult -- to value right now in good times when there's plenty of benchmarks trading going"...
[1:15] ..." have said that this credit market will continue to be frozen until. Financial institutions can identify their assets and what their war."...
[0:00]" This is Japanese sold in the WBZ newsroom many investors are wondering how the stock market could possibly go into its biggest deals than ever this week. In accounting terms it's all about something called mark to market accounting. How to determine a fair value of an asset when the market is falling apart and there's really no market. -- G Peter Wilson at Boston College tells me banks and financial institutions have been stymied by their inability to value their investments mortgages and other holdings so assets are being sold. At fire sale prices. I spoke with professor G Peter Wilson at the Carroll school of management at Boston College."
[0:39]" Well every moment left and -- of the fair value of the price at which -- itself contending good times when there's plenty of bench mark available. As benchmark prices because people were treating CDs. Collateralized debt obligations return. Which are very difficult -- to value right now in good times when there's plenty of benchmarks trading going on it's fairly easy to come to. Objective assessment of what would be fair yes it is much more challenging when there's no trade obviously and that's a separate -- of."
[1:12]" So what is needed. Two. As as many analysts have said that this credit market will continue to be frozen until. Financial institutions can identify their assets and what their war."
[1:26]" tricky question there is we'd all we'd all love to know what their words and and we like to think that there's some true value underlying these. As a bit of wishful thinking. These there's there's a price sisters and market. And then we can use -- as a reference but the notion of a true -- it is. Is only true and -- And an announcement that that does that doesn't just -- right I mean reflect factors that true. Two of the value that for example Warren buffet Oprah. A value on something. It's different Wednesday some selling him -- and and he's been pretty -- for years so. Values that is how we attribute. We think something is worse. That's different in price because each of us were -- her own population. So less and I would have people think upon it is. When we talk about a crisis of confidence it means. Accounting perspective that the information we're getting. We just can't be as confident about it does not -- mother Teresa could be doing measuring. Or or Warren Buffett could -- measure of thousand people like him and we part becomes the difference as."
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