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It would be neat if the bond and loan interest were equalised and the net effect was neutral. First leverage - the only one that matters. When Govt.'s got trouble, the economy is there to help. When the economy has got trouble Govt are there to help. This is the basic concept of economics. Some modern genius's (not) broke the system. They know not what they do, because they do not understand and worse they do not care.
GENERATE GROWTH by the shed load and spread wealth by creating value which as every one realises by now = the bedrock of finance, Collateral.
Interest as income is used toilet paper!
Check out Thomas Jefferson, it is an idealogical argument. So too, actually is the entire Derivatives market concept. One that has never been debated or openly argued.
Now - the real genius.
This is how retirement Annuity and all pension fund investment should be done.
That is one mountain of potential.
Sit back, SMILE! ;)
cheap finance. cheap finace. cheap finance.
Shall l say it again.............. yeah.... Cheap Finace.
Save for the future to save the future.
Of course, no economic innovation is perfect. Hedge Funds will have serious problems. Basically it would mean our governments have hold of their assets and fingers stuck bown the back of their throats because of the potential destruction of asset value, if they even dreamt, of continuing this nightmare anti economics that they seem so fond of. One li'l squeeze and out pops their collateral. Ouch.... that really could be a tearful experience.