Buried deep in the bowels of the NY Times this past weekend, Ben Stein had a few remarkable ideas:

1) End Mark to Market Accounting
2) Revive the Uptick Rule
3) Reduce speculation on Credit Default Swaps

each of which should lead to reduced volatility in financial stocks. As Stein puts it

“Now, some of the decline in the financial markets is occurring for a very good reason: real concern about profits and coupon payments. But some of it is simply a result of the internal workings of the markets, which are pushing securities relentlessly down.”

Predictably the self depreciating Stein was ridiculed for his suggestions by the esteemed Conde Nast Portfolio.com. But Stein realized that hearings were to be held this week discussing accounting regulation. So today, when Barney Frank gave a nod to some regulatory reform, the markets reacted in a very favorable manner, with the Dow jumping 379 points or 5.8%.

Imagine the reaction if Congress would actually implement some accounting reform, or scale back tax hikes or reduce spending. Here’s to a change in course!

More on Mark to Market at the Chicago Daily Observer