Exact(1)
Most recently, the collapse of the U.S. savings and loan industry in the late 1980s once again showed how the impairment of a country's banking system can interrupt the credit creation process, destroy asset values and otherwise impede the ability of households and firms to carry out their ordinary economic affairs.
Similar(59)
The theory is that by destroying asset values we can increase earning power and therefore enhance the market value.
But in the long-term, you've started the process of destroying asset value in a less clear, less measurable way.
Under the old system, the uninsured value of destroyed assets was effectively subtracted from income, both for companies and for homeowners.
In a paper for the Financial Analysts Journal, Robert Novy-Marx of the University of Rochester argues that by destroying assets invested in cash a scheme can reduce its deficit by increasing the expected return on remaining assets.
They found that none of them, including Hurricane Andrew in 1992, which destroyed assets equivalent to 1% of GDP, had had any discernible effect on growth beyond the quarter in which they occurred.
Thus the Type A objective of fatally weakening an opponent by destroying assets important to his success -- in theory, a measurable process -- is replaced in Type B war by the much more complicated, essentially unquantifiable task of defeating him.
Aside from the financial and humanitarian cost associated with violence, it also destroys assets and institutions.
"We maintain that the atmosphere and climate are held in trust by the present generations for the future generations and we do not have the right to destroy that asset," Hansen said.
And deflation destroys asset prices.
In the last days of that war, he returned as a civilian, on a mission to destroy military assets before they fell into North Vietnamese hands.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com