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מציג פוסטים מתאריך מרץ, 2011

the problem of banks valuation - after the banks crisis

The economics-blog "Musing on Markets" has an interesting piece on the problem of banks valuation, in the era following the collapse of some of the too-big-too-fall banks.
As much as one may like such a brave attempt at finding an answer for this riddle, I fear that it will take many more years before a new generation of investors will learn to trust banks, and ignore the follies of markets that bring calamities upon financial markets.
And when we talk about banks, in particular, as the past's most reliable financial institutions to invest, we can talk, in way of extrapolation, on all investments.
Regardless of current regulatory efforts, there is no doubt in my mind that with the years, once again, the chains of regulation will be undone, and once again, banks and corporations will be free to take risks that will make them, once again, dangerous assets.
The real danger lies with the assumptions everyone share. The last crisis relied upon the common belief that most mortgage…