A Welcome Delay

This is a welcome relief, and arguably, the right thing to do given today’s set of facts.

It’s the BASEL endorsement and encouragement of the holding of sovereign bonds as “ risk-free” that have lead to a lot of the pain in Europe. BASEL increased the holdings of risk-free sovereigns in the banks.

The SEC’s decision to delay the potential ruling is prudent and appropriate.

[$$] SEC Delays Call on Accounting Rules – The Wall Street Journal, December 6, 2011