westwest888

MBIA: Is Fair Value Accounting a Good Deal for Investors?

I think the value of something with no price is 0. Think of it like an IRR problem at a factory. You buy capital equipment at some huge outlay -1M. It has a miserable salvage value after you buy it and install it, like $0.20 on the dollar. And then you get a stream of cash flows from it's output for 30 years at 10k a month.