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How is profit defined? If a bank creates the money for a loan on a house, the loan defaults, and the house is foreclosed on, does that foreclosed asset count a
by wu-ikkyu 9y ago
How is profit defined?
If a bank creates the money for a loan on a house, the loan defaults, and the house is foreclosed on, does that foreclosed asset count as a profit?
- ikeboy 9y agoAssets get valued using various valuation models. But banks generally will try to sell houses as quickly as possible, they don't like sitting on stuff like that.