Display:
It's off-balance-sheet
Your imagination is the limit.
Wait, it gets better
Perhaps on the balance sheet of another company.
Usually on the balance sheet of a Special Purpose Entity (SPE).
Your company's shareholders perhaps know it, perhaps not.
LOL
do you mean "creative accounting"?
I prefer to call it "financial engineering".


En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Thu Jan 14th, 2010 at 06:02:09 PM EST
[ Parent ]
Apparently Eurostat think it is a great idea.  And the OECD loved our very innovative "long term economic value" concept for over-paying banks for their assets.  Apparently it was sufficiently vague to defy analysis which was the point of the exercise.

Anyway, you can't fault the Irish for not trying it on...

notes from no w here

by Frank Schnittger (mail Frankschnittger at hot dotty communists) on Thu Jan 14th, 2010 at 06:32:52 PM EST
[ Parent ]
That's just the same argument US banks used to get the US government to overpay for their assets. The idea is that if you just manage to ride out the storm until the sunny day when asset prices are back up to 'normal'...

So much pressure to reform accounting standards to reflect mark-to-market and it had to come to this...

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Thu Jan 14th, 2010 at 06:37:18 PM EST
[ Parent ]
Well when the market is "wrong" you just create a futures market in "hope".  Obama did it in politics as well.  You extract a current market premium by leveraging people's aspirations (or desperation) for the future.  It's a bit like selling the power from solar panels that will be generated from "sunny days" yet to come.  Jerome does it all the time in a windier way...

notes from no w here
by Frank Schnittger (mail Frankschnittger at hot dotty communists) on Thu Jan 14th, 2010 at 06:47:36 PM EST
[ Parent ]

Display:
Login
. Make a new account
. Reset password
Occasional Series