ahhaha's ahs Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : ahhaha's ahs

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: GraceZ who wrote (1383)	3/5/2001 1:15:33 PM
From: ahhaha	Read Replies (2) of 24758

They can't, so they only try to control the overall availability of money. In the past they had much better control because C&I loans were the primary engine for economic growth. C&I loans have been growing very slowly since '94 relative to previous expansions. There are many reasons for this including a movement to finance using contribution rather than borrowed, capital. It is rather humorous that you contrast "productive assets" to "working capital". Your humorous contrast does expose a truth in this era and that is that working capital is often working in investments in other companies, i.e., in paper assets rather than in physical assets of plant and equipment. This reflects more than a will to avoid "productive assets". It shows that the cost to invest in efficient plant is tremendous, because the plant must compete with existing facilities and because the scale of the investment must so great as to achieve an economy. The result is it's better to invest in someone else's determination to create such plant because the liability is effectively less. Better stated, the return integrated over the risk profile is better.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next