The Fed on commercial real estate. Oh heck, just make up the numbers

From the comments at Zero Hedge about the Fed press release about commercial real estate

I am truly depressed. ONLY the FED could come up with this line:

“In addition, performing loans, including those renewed or restructured on reasonable modified terms, made to creditworthy borrowers, will not be subject to adverse classification solely because the value of the underlying collateral declined.”

Please continue to mark to myth because we said it is alright e.g. continue on with the pretend and extend program.

To get through this financial crisis, we need a government that follows GAAP (Generally Accepted Accounting Practices) and insists businesses do the same. Instead we have a bizarre and dishonest land of illusion where the rich and powerful pretend their junk assets are worth actual money, with the blessing of the government. It can’t last. It won’t last. Because it is built on lies, evasions, and deliberate untruths.