But now, every day the markets look for signs of reassurance – most of them provided by the clearly fabricated news on the number of UK deaths that dramatically understate what is happening that is issued by our government each day – and try to edge back upwards.
Yep, lying to us, lying I tell ‘ee!
There is also this terrible misunderstanding:
Instead, assets have been (in the main) valued at their market worth under ‘mark-to-market’ rules.
Something is valued at what it’s worth. This is pretty cool, not a bad idea.
One is that balance sheets no longer represent the activities of a company, as such: they represent the company’s relative worth in the market as a whole.
We should be valuing a company at something other than what it’s worth?
Because we do not value what a company does any more, which is what historical cost accounting did,
But marking to market is to value the company at what it does. That’s what the market value is. The holistic valuation of what’s inside that legal wrapper called the corporation.
fundamental asset revaluation will happen in the post-coronavirus world,
Quite possibly true. And it will be the change in the market values of those assets which will guide us to that change in valuation, won’t it? What other system are we going to use?
The Fat Controller tells us perhaps?