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Sedans Luxury Lounge
21387 messages, Last post on Nov 25, 2009 at 8:11 PM
You are in the Sedans Forum. Your Hosts are pat & karens
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Replying to: bmlexus (Mar 26, 2009 9:44 am) |
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Replying to: tagman (Mar 26, 2009 11:16 am)
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Replying to: ljflx (Mar 26, 2009 5:05 am) Mark to market accounting does have an adverse affect on the required capital ratios as defined by various regulators for financial institutions. Write offs due to mark to market accounting are causing capital ratios to fall steeply and as a result we have massive government capital infusions boosting capital ratios back to their former levels. These massively government infusions are destablizing the US and various other countries balance sheets All of these capital infusions can be considered senseless when "mark to market valuations" reflects serious illiquidity issues versus the "real cash flows of those assets. Here's the solution: Regulators should not solely use "mark to market" accounting but other valuation methods/models that are more "cash flow based" in order to figure out whether a firm has enough capital . But here's where I beg to differ. For all users of financial reports other than regulators "mark to market accounting should remain the sole valuation tool for financial securities (liquid and illiquid). Why? Because any other valuation method will be based on management models and opinions about risks which as you know will likely be highly biased or even deceitful. And as you also know using historical costs would be completely useless and irrelevant for all financial report users. So you may ask why should regulators be allowed to have more valuation options than a general public investor? The answer to that is a regulator can get legal access to corporate inside information. In the case of a public investor such access to inside information is illegal . With this advantage regulators are better informed to make judements on management risk models and valuations than any public investor. With this scenario the public investors best bet is mark to market accounting since all other models are based on biased management assumptions in which a public investor may not be able to verify. |
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Replying to: jlbl (Mar 26, 2009 7:02 am) interesting perspective. What truly amazes me is how universal the housing market has become. In the past decade or so real estate prices in almost every corner of the world bubble up and simultenously bubbled down. Recently there were predictions that most of the world would be decoupled from the US subprime mess since subprime mortgages hardly exists anywhere else. Well guess what? Most of the world especially those without subprime mortgages are suffering the same fate as the US housing market. |
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Replying to: tagman (Mar 26, 2009 1:10 pm) What does a Telsa go for? $104K ? I wouldn't even spend $104K to own all of Chrysler Corp let alone a single car from that company.
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Wow! Read how this reviewer loves the Prius. I have never ever read any reviewer this excited about a non-Italian sports car. link title Turns out this reviewer got significantly better mileage than the EPA 52 figure. All the technology in this car and all the engineering involved to produce a car at this price is quite remarkable. Talking about Toyota I am going with my family to London, England sometime in June. One place we will visit is the London Science Museum where they have a Japan Car Exhibit sponsored by Toyota. It should be interesting. This year I am definitely avoiding that BMW museum in Munich. 
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Replying to: tagman (Mar 26, 2009 5:30 am) Unfortunately with markets that is not the case. Extremes with markets cannot really be represented by such a bell curve since extreme events happen far more frequently in markets than in nature. The Japanese stock markets are still significantly down even after two decades and seems to continue going down as time passes by. Stable equilibrium values are not as easily defined in markets as they are in nature. |
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Replying to: dewey (Mar 26, 2009 8:10 pm) Enjoy! I love London. Very cultural and some of the worlds greatest resturants. Plus in June you get sun until 10 at night and the weather is usually great. One of my favorite restaurants is Papillon in Kensington but it's not cheap. Don't miss the museum of natural history. Looks identical to the one in NYC from the outside. |
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Replying to: tagman (Mar 26, 2009 10:55 am) If you don't like I wont post.
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Replying to: dewey (Mar 26, 2009 8:04 pm) Dewey, The original Tesla roadster is over $100K, but the objective of the company has always been to mass market a sedan at a fraction of the roadster's price. If the sedan was ever priced as horribly expensive as the initial startup roadster, then hardly anyone would buy it... as you so appropriately responded yourself. The Tesla roadster body is essentially a variation of the Lotus Elise (obviously supplied by Lotus) but with the Tesla powertrain utilizing their supposedly excellent battery technology. Tesla's strategy isn't that bad, but the cash crunch at the company is slowing things down. Fortunately for Tesla, they have very good technology, and they might be able to selectively sell the some of the rights to that intellectual property. If they can get over the hump, they could actually have a future. But it's a giant hurdle indeed. Speaking of Chrysler... Tesla acquired Mike Donoughe, a former Chrysler executive who will become Tesla Motors' Vice President of vehicle engineering and manufacturing. Donoughe's reputation is good, from what I understand. Personally, I'd like to see Tesla succeed. TM |
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