Our friends at the Competitive Enterprise Institute have an informative take on today?s rise in stock prices. The key graf:
The stock market has gone up by 280 points so far today, fueled by FASB?s vote to relax rigid mark-to-market accounting rules, which require financial institutions to value assets at their current fire-sale prices, and magnify boom-bust economic cycles.
The market may also be getting a boost from the Senate?s earlier vote undercutting the Obama Administration?s proposed $2 trillion ap-and-trade carbon tax, which would impose burdens on the economy akin to Herbert Hoover?s disastrous 1932 Revenue Act at the beginning of the Great Depression.
