Hey Isaac

he must have been at an airport with the TV monitor hangin over his head, with CNBC on it...."from above." yeah right. These Stocks Could Skyrocket 100%, Says Jon Najarian Posted By: Lee Brodie On CNBC’s “Closing Bell” FM contributor Jon Najarian told Dylan Ratigan he sees a catalyst out there that could lift banks [XLF 6.89 -0.09 (-1.29%) ] as much as 100% - and as soon as next week. The catalyst involves mark-to-market accounting; which has been blamed for forcing banks to record billions of dollars in writedowns. According to Reuters, a U.S. House Financial Services subcommittee is expected to hold a hearing on mark-to-market accounting rules as soon as March 12. The SEC's chief accountant and the chairman of the Financial Accounting Standards Board, will be asked to testify, the report said. If that meeting results in the government relaxing mark-to-market rules, Najarian thinks the stock market could explode. He says, “if the government relaxes mark-to-market for 12 to 18 months you could see financials move 100% in a matter of hours.” And he goes on to say, “In fact, I hope you’ll replay the soundbite because if the government relaxes mark-to-market accounting a number of banks stocks will be unbelievable values at these levels.” But that's not all. Najarian thinks the move could not only light a fire under banks, but the entire market. “If that Reuters report above is right there’s a very good chance the entire market will get a big lift.” Again, the date to watch is March 12th.

I wonder what mark to market would do to GOLD stocks and GOLD itself...... part of me says, since the risk of collapse would be at least postponed if not eliminated, GOLD as a safety haven should go down and the gold stocks should follow on the downside, but then part of me says this will bring back asset inflation and confidence which would somehow increase money velocity which is what's keeping inflation on a leash and therefore gold would go up anyways.....as inflation expectations increase..... In a way I don't care since whatever happens would leave footprints on the charts and I would play that accordingly but what about the one time effect the day after, gap up or down? charts won't be able to reflect this. If anybody has more knowledge on this subject please reply.....I am currently short the gold stocks at least for a few more days. Thanks, Goldswinger.

Edited by goldswinger, 05 March 2009 - 01:12 AM.

So if the rules are changed, a bunch of money will flow into the market? Man, this is sounding more like a dangling carrot every time I hear it. Glad I don't follow this BS. Hesitation over what might happen...might as well walk away now if this affects you. D

Can someone explain this to me in realistic terms? How can someone make such a claim? 100%? Huh? How can a policy change cause such a move and why is that healthy? So this mark to market is an old federal regulation and now they want to relax it? I suppose I can see a positive response to any deregulation, but I thought deregulation caused the crisis in thef irst place, what the hell is going on?