No. of Recommendations: 4
Does it not occur to anyone that what the author of this article says makes no sense?

Book value = assets - liabilities

First, the guy says the bank's financial statements reflect the real asset and liability situation of the banks.
THEN, he says that the bank's assets are unable to to earn enough to cover the costs of the liabilities.
Well if what an asset earns doesn't cover the liabilities incurred to acquire it, shouldn't it be written down???
Read it again, slower, then come back.
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