Ken Houghton wants to sidebar today into looking at the general application and implications of an Accounting Identity: Assets = Liabilities + Equity (A=L+E, or the ALE Rule). Let us…

…approximately a AA rating level anyway—a perfectly reasonable assumption for the reconstitution of a formerly-AAA company with some carryover liabilities. The additional equity commitment would give AIG the ability to…

…homeowners is that they would be allowed to stay in their homes, possibly with zero equity. (Some proposals also give the homeowner a small equity cushion.) NPR and other news…

…the definition of CDS, but Zeke and Fred’s counter-party would both benefit from writing the contract that way. Now if equity in Fred is counted as one of Zeke’s assets…

…Goldman’s balance sheet just improved, because they have $5 billion more in assets and no more debt (Buffett bought equity). update: I should have noted that $ 5 billion increases…

…assuming our entity has no debt). On the former, Hassett & Glassman were arguing for an equity risk premium of only 2% whereas Aswath Damodaran suggested equity risk premium between…

…issue, I consulted the webpage of Aswath Damodaran to find his excel file labeled “Implied Equity Risk Premiums – United States”. The purpose of Damodaran’s analysis of stock market data…

…the stakeholders of companies such as GM and United Airlines include not only equity holder and bond holders but also workers who received deferred compensation in the form of pension…

…Myth #2: Owning is always preferable to renting, because at least you build up some equity with your monthly payments. While it is true that you build up equity when…

…the part of the rich to drive all asset yields down. Yet what we have seen has been a steep, prolonged fall in Treasury bond yields while stock-market equity yields…