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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (104800)	9/3/2009 3:15:55 PM
From: Broken_Clock	1 Recommendation Read Replies (1) \| Respond to of 110194

He sure comes off as a complete asshole.

To: Elroy Jetson who wrote (104800)	9/3/2009 3:18:10 PM
From: RJA_	Read Replies (1) \| Respond to of 110194

He probably borrowed the assets to capitalize the bank, so its true for him <g>...

To: Elroy Jetson who wrote (104800)	9/4/2009 3:02:15 AM
From: Hawkmoon	2 Recommendations Respond to of 110194

His background as a banker helps explain why he's a "prosperity though debt" ding-a-ling just like Hawkmoon and Ronald Reagan. Hey moron!! If I can borrow $1 million at 5% and invest it in a business that nets me 20-40% profit, then I'm feeling mighty prosperous. Call me a ding-a-ling if you want, but it's the QUALITY of the loan, and the purpose to which it's put, that really matters. Thus, if debt enables an entrepreneur to facilitate the purchase of manufacturing equipment for the purpose of producing and PROFITABLY selling a product, it DOES enhance prosperity, especially if the product I'm selling increase productivity for the consumer. If I'm a farmer who's relegated to using a ox and plow, I can only produce so many crops per year. But if I can borrow money to purchase mechanical equipment, my ability to produce (and hopefully profit) increases exponentially. I can pay off my loan with my profits. And if I can pay off my profits, that means savers/depositors get paid. If I don't borrow, depositors will receive no interest (except from the government, which seems to be the situation currently as most deposited money is being plowed into T-bills by banks). But if I borrow excessive money to expand my production in what I believe is a shortage of grain, when the reality is just the opposite, then I'm screwed because those crop prices are going to collapse. This happened to a lot of farmers who rode the ethanol craze, thinking they were going to make a million from Bush's inane program. But then it became clear that the oil markets were severely manipulated to a ridiculous level, and the price of ethanol collapsed right along with it. Btw, the oil markets are STILL manipulated given the amount of oil we currently have in storage. Hawk