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!
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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No, you still don't get it. If you don't need additional financing your bonds would NOT be at 20%.
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I do get it and now you’re making me mad. I keep telling you that under the following conditions it is mathematically profitable and you keep ignoring my statement cite different conditions. Markets are volatile and misappraise as you know better than I.
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