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Bailout 2: Book Value

Posted by admin in Finance Friday, 14 October 2011 22:21 23 Comments


Hypothetical bank balance sheet. What book value means.

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This entry was posted on Friday, October 14th, 2011 at 22:21 and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

23 Comments

  1. 10/14/2011 23:15
    posted by jennygozo

    hey guys can you please help me? i was wondering in the case of CDOs, how does the bank account for the money it gets back from the SPE in its BS? Does it account for it as cash? caus in the video it is stated that the residual CDO is the traunch which was the most risky only. So i was wondering were the amount the CDOs were sold for goes in the BS.

    thanks

  2. 10/14/2011 23:54
    posted by agonizingowner17t

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  3. 10/15/2011 00:26
    posted by vickiormindyb

    I think-I’m not sure-but I believe Paulson is the guy my friend Robb had a bee in his bonnet over.
    He didn’t like him. When I asked him who it was he said he didn’t want to visit that topic just then. But not before he called the guy a choice name.

  4. 10/15/2011 00:43
    posted by kermitcintronsucks

    He’s doing gods work. Every Physics and chem teacher should be doing this. Every teacher should be doing what khan is doing. All of these teachers should join forces giving free education in abundance.

  5. 10/15/2011 00:47
    posted by kermitcintronsucks

    This guy is GREAT!

  6. 10/15/2011 00:57
    posted by SHIABOON

    your are genious. our generation is very belessed with people like you. My fellow poor young africans pray for you every day for the support they never get anywhere. Again God beless you.

  7. 10/15/2011 01:21
    posted by bananaminge

    very clear and easy to understand, finance need not be complicated (mostly anyway!)

  8. 10/15/2011 01:29
    posted by pagalmadman1

    there are so many valuable videos…… and i ‘ve been wasting time in searching youtube since past 1 month…….. i need to watch u sal for 1000 more minutes atleast….. in order to become financial literate!!
    ur doing a great job…….. ur time is highly appreciated………..

  9. 10/15/2011 02:02
    posted by JanamDJ

    Great video, just like all the other ones you’ve made

  10. 10/15/2011 02:10
    posted by JonnyFlash80

    You make really amazing videos. You explain things so clearly. I can say I learned something today.

  11. 10/15/2011 02:32
    posted by Lukeeeeo

    hehe yeah i didnt notice that the first time! I think he means it

  12. 10/15/2011 03:17
    posted by kinw1234

    can anyone help me?

    from what im aware banks took assets off balance sheets to avoid having to hold capital.

    for that to happen, it needs to be a true sale rite?

    does this not mean it no longer belongs to the bank? how come it comes back onto their balance sheet and gets written down??

  13. 10/15/2011 04:15
    posted by samsamisam22

    wow

  14. 10/15/2011 05:14
    posted by DamonThakiFortune

    1:40 – 1:50 for some reason is halarious to me, “The Government owes my 1 billion dollars”……classic.
    Awesome vid.
    Love all the vids you post…

  15. 10/15/2011 06:07
    posted by Ritzoid

    Nice!

  16. 10/15/2011 06:51
    posted by wrongnumber6

    Excellent Video !! Wish My Professors were this clear !

  17. 10/15/2011 07:02
    posted by Jayhawkblue

    Excellent video!

  18. 10/15/2011 07:08
    posted by 1Kruker1

    If it wasn’t for a somewhat shallow,proverbial “keep up with the Joneses” middle class we wouldn’t be in this situation.If it wasn’t for the Democrats campaiging on the platform “everyone has a right to own a home” and failure to address the neglected operations of the GSE’s, we wouldn’t be in the situation. And if it wasn’t for Wall Streets short-term greed and lack of fore sight, we wouldn’t be in this situation.Everyone’s to blame, but its easier to point the finger than to accept this.

  19. 10/15/2011 07:56
    posted by 1Kruker1

    My previous post was made prior to watching the later videos in this Bailout series. I do understand the issues of solvency vs. liquidity, however the potential value / market for these toxic CDO’s is still up for debate (although I agree that demand for these securities could indeed be artificial through government acquisition) and it seems only time will tell how this plays out.
    The problem with this crisis is that no one wants to take accountability, even Main Street.

  20. 10/15/2011 08:28
    posted by pongman

    Oh and one other thing. Sal is extremely altruistic. He doesn’t get any material or political gain by making these videos. It would be nice if our political leaders were of the same moral fiber and believed in helping the planet Earth. I hope he wins the Nobel Prize for all his efforts. That would be nice. Hmmmm, I think I’ll send an email to the Nobel Committee.

  21. 10/15/2011 09:21
    posted by pongman

    Did you watch his solution video?! The Plutsky Plan. The problem with Paulson, Bush and Bernanke is that their fingers are sticky. They are all owned by big business and could care less about the average American. Their agenda is first save the corporations and if it helps the average American then fine; but corporations first, Example; Lone Star Fund, Merrill Lynch, and Carlyle Group.

  22. 10/15/2011 10:14
    posted by 1Kruker1

    Although Sal’s videos are great and he is an excellent teacher and a very knowledgeable man, Henry Paulson is also a very financially intelligent being.

    So for people to criticize all of these problems on the current administration when these problems (Fannie / Freddie, etc pass throughs, etc . . .) is somewhat ignorant.

  23. 10/15/2011 10:25
    posted by pongman

    Lol, I think Congress should call you first and ask you to give them a remedial course on banking and securities. Perhaps a closed door session with you in front of a huge blackboard with you explaining to all of Congress what’s happening. Then perhaps they could make a good decision as to what is the best way to handle this disaster. Hmmm, I’ll send this to Congressman Wexler while I’m thinking of it!