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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (117934)3/6/2009 6:57:00 PM
From: Night Trader1 Recommendation  Read Replies (1) of 132070
 
That's the classic example of the difference between replacement cost and actual value. I've just finished reading Smither's and Wright's prescient 2000 work Valuing Wall Street and the market metric they popularized, Tobin's Q, which is the replacement cost of US firms has an historical average of only 75%. It's now below that level for the first time in decades.
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