Peter Wallison has an opinion piece about valuing bank assets in the Wall Street Journal. A quick summary: Both taxpayers and banks could come out well — and so would our economy — if the government were to buy the assets at their “net realizable value,” which is based on an assessment of their current cash flows, discounted by their expected credit losses over time.

See the original post:
Asset Pricing 101

Thanks for replying in the comments.

Read more:
Replies

Next week marks the beginning of a new academic year here at UQ . I’m teaching two courses this semester — an introductory finance course for business majors (over 850 students), and a personal finance course with no pre-requisites (over 100 students). If any of my students find their way here, do say hello in the comments

Read the rest here:
Getting Ready