We are told the problem with trading credit derivatives over-the-counter is lack of transparency. Investors don't know how much risk the banks have on their balance sheet.
We read that no one really knows how much of these toxic assets have been bought by banks because they are not disclosed. They are not required to be disclosed because they are not regulated. A different solution to taxpayers footing the bill would be to ask the banks to keep the trades invisible but sell their invisibility to investors. Good information makes money so create a market.
The banks will make this invisible 'inside-info' visible to those investors who are willing to buy it in order to avoid betting their money on the wrong horse and lose more. But by selling the info to investors banks make money which reduces their losses so that other investors get interested in investing in them again.
Just because the logic is simple it doesn't mean it's not ingenius. If you don't think so, ask yourself why is it any more ingenius to have the taxpayer pay and not an investor pay to buy a good asset (a.k.a inside info on the losses).
The invisible hand of the market can recycle money as it knows best by turning the invisibility of risk exposure into a precious asset up for sale.
http://www.thinkaloo.com
Showing posts with label recycle. Show all posts
Showing posts with label recycle. Show all posts
Saturday, July 4, 2009
Wednesday, February 27, 2008
Plastic Flowers on The First Date
This thought was posted on Thinkaloo on 23 October 2007 by member misterainstain
Visit www.thinkaloo.com, our new online community where you can share your thoughts and knowledge, discuss your ideas, ask questions and meet smart people
---
Hi beautiful, these flowers are for you! So that our first love never fades away...
Here is why plastic flowers on the first date is brilliant. If the date doesn't go well, you can use the flowers on the next one.
Plastic flowers are also environmentally friendly, cause they help keep the real flowers in the soil, where they really belong!
I know some women might not like this idea at all, but those of you who will, you just proved your good sense of humor.
So, to my female supporters out there, I promise to buy you dinner all with your support.
If that sounds cheap, it isn't. It is called R-E-C-Y-C-L-I-N-G! Hope this idea will save you money and time on your next date. Thanks for supporting it. I promise not to use your support for dinner with my female supporters. I just need it for buying them plastic flowers!
Visit www.thinkaloo.com, our new online community where you can share your thoughts and knowledge, discuss your ideas, ask questions and meet smart people
---
Hi beautiful, these flowers are for you! So that our first love never fades away...
Here is why plastic flowers on the first date is brilliant. If the date doesn't go well, you can use the flowers on the next one.
Plastic flowers are also environmentally friendly, cause they help keep the real flowers in the soil, where they really belong!
I know some women might not like this idea at all, but those of you who will, you just proved your good sense of humor.
So, to my female supporters out there, I promise to buy you dinner all with your support.
If that sounds cheap, it isn't. It is called R-E-C-Y-C-L-I-N-G! Hope this idea will save you money and time on your next date. Thanks for supporting it. I promise not to use your support for dinner with my female supporters. I just need it for buying them plastic flowers!
Subscribe to:
Posts (Atom)
