For Sabre, Goldman , Sachsdid the valuation work.
The substance of a fairness opinion is the valuation work conducted by a financial adviser.
"How could you not make investment decisions based on that?" Eyebrows were raised in Greece when the firm was approached to handle loan valuation work for a friendly merger in Greece between two banks it had just reviewed.
Shiller replies that finance is not just a theory, it has practical impact on everyone's lives, and he's pleased that the asset valuation work has been recognised.
Perhaps it might be sensible to create a committee of wise men and women to review any and all valuation work – people with the requisite backgrounds in accountancy and banking who might be willing to step up for modest fees, some expenses, and perhaps a gong or two.
But Mr. Blitzer emphasized that it was too early to use core earnings for valuation work, because S.& P. has computed the data for only six quarters, back to the beginning of 2001, and only for companies in the S.& P. 500.
The paper lays down the need for arriving at national policies from microlevel valuation work.
"I am a natural optimist," he insists, noting that while his valuation work showed that stocks were overpriced for some time, he turned bearish only last summer, when he called for prices to fall.
