At the "meeting", #RiadPonzi exhibited a lack of financial proficiency.
He said "We issued CDs at 6%, they are now at 20%, so we have profits."
Imagine a CEO saying: we issued bonds/stocks, their value collapsed, we make yuuge profits if we bought them back 50% lower!
If they don’t have to issue new debt or equity, it’s a profitable transaction; I sell a promise to pay $100 for $97. 1 year later market incorrectly values the promise at $50. I buy it back. I’ve made $47. I wouldn’t make this a country’s economic plan, but it is profitable.
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You don't get it. Where will you get the funds to buy it back fromm? By borrowing at 20%
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I do get it. I’m making a technical point which does not change the general correctness of your statement, but I’m nonetheless still right. Borrow $97, promise to pay $100. Buy back for $50. Keep $47. Provides no need for additional financing, it works.
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