Ultra Stylish Valuations…From Josh Perskey.
Look, the valuations business is tough…but right now its at core of any kind of rebounding economy. Had someone done a proper valuation, ultra chic or otherwise, on Bernard Madoff….we would have found out that The Emperor had been wearing the same clothes…from Sears (which he got like in the 70′s)…..for a long time.
In a world where one of the inventors of electronic trading was not trading at all for years…the idea of the closed Hedge Fund has to be decimated…if it is not….there are even more greedy suckers out there than we imagined possible. Tried and true intelligent valuation is at the center of good investing….and looking great while doing it…is what Glamwire is all about. You don’t have to look like a schmo to be honest, hardworking and talented. And Josh Perskey proves that once again in the following report.
Chairman Bernanke, speaking at the Council on Foreign Relations, had a few words to say about valuations:
The ongoing move by those who set accounting standards toward requirements for improved disclosure and greater transparency is a positive development that deserves full support.
However, determining appropriate valuation methods for illiquid or idiosyncratic assets can be very difficult, to put it mildly.
Similarly, there is considerable uncertainty regarding the appropriate levels of loan loss reserves over the cycle.
As a result, further review of accounting standards governing valuation and loss provisioning would be useful, and might result in modifications to the accounting rules that reduce their pro-cyclical effects without compromising the goals of disclosure and transparency. Indeed, work is underway on these issues through the Financial Stability Forum, and the results of that work may prove useful for U.S. policymakers.
