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Re: [socialcredit] Jim
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Re: OWNERSHIP: the Matvox
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Replying to Jim Sc William
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a Douglas question Jim
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Subject:[socialcredit] RE: OWNERSHIP: the "zero sum" fallacy
Date:Sunday, May 1, 2005  15:33:12 (-0400)
From:Ed Dodson <ejdodson @.......net>
In reply to:Message 1167 (written by Matvox)

Ed Dodson responding...
Matt Greco wrote:
 
 ... firms do record the equivalent value of an asset purchased so that there is no change in overall value to the firm and for which they now have a book value for the asset. But presumbably they bought the asset because they feel it will make a better return on capital than money sitting idle. At any rate, there are occasions when a firm  might be required to reassess the value of that asset to mark it to market value rather than the historic book value. It is possible to make reasonable estimates of this without actually making a sale based on equivalent sales. 
 
Ed Dodson here:
The real issue for businesses is having to record such gains and losses, which might be very temporary (e.g., with regard to derivatives). And, not only does this impact profitability and share prices but tax obligations. The difficulty is the instability of asset markets, generally: what is a gain one week turns into a loss the next.
 
 
 

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