The explanation must be that bank capital regulation is based on book values of capital, not market values.
Their values, their book values, liquidate values, bad debt ratios, ROEs, ROAs, whatever you want to look at, were improving.
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The obsession among finance experts with book values is puzzling, as they should know better: book values reflect the past, and markets anticipate the future.
IPOs has always been strongly correlated with market peaks, measured by the ratio of capitalisation to the book values of companies and by price-earnings ratios.
The basic lesson of all of this: stop pretending that you can control the financial health of banks with regulation based on book values of capital.
It is also stymied by the fact that book values fail to take full account of intangible assets things you cannot kick, like brands, patents or partnerships.
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According to the French magazine Le Point, more than 250 Porches leave the Italian peninsula every week to be sold elsewhere at 30-40% below Blue Book values.
It cannot be applied to companies with negative book values.
Whether the earnings and book values are of the real world would require deeper analysis, but with the uptrends intact, this may be a decent place to start investigating.
However, with no companies in the space reporting second quarter book values yet, investors have to estimate current premiums based on first quarter numbers and the performance of mortgage backed securities over the last three months.
It will experience higher revenues due to the Fed program and, more importantly, it will see the value of its troubled housing assets rise to the point where they can be sold at profits relative to their book values.
The phrase may never appear in the text, but this is really a book about Asian values.
But it would be a pity if the book reinforced exaggerated claims about values voters.
Western and Mideastern values collide in a book commentator Andrei Codrescu picked up recently.
Rest easy, true believers, the movie does a serviceable job of laying out a CliffsNotes version of Ayn Rand's epic novel without straying from the core values that made the book one of the bestsellers of all time.
Some believe Nook is as good as Kindle (or even better if one values an open e-book format), but not enough if one goes by market share.
These points rang home during the opening keynote by John Gerzema, author of the book Spend Shift: How the Post-Crisis Values Revolution is Changing the Way We Buy, Sell and Live.
Of course perennially land-rich and cash-poor Chesapeake was seeking to talk up its book at the time it was negotiating joint ventures, but that vast discrepancy between the values that the company was touting to shareholders in its presentations compared with ultimate deal realizations should just reiterate how little credibility McClendon has with investors.
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