Re:An Infinite Regress. Of Dumb: More Reflections on “Market...
by vasilipupkin on Monday March 16, 2015 @05:50PM
(#9214664)
valuations are based not just on current cashflows, but future expected cashflows. That's why leverage is so crucial - it allows us to borrow against future cashflows so as to finance projects today. One way to think about, on this forum, we can agree that at some point in the future, we will have self driving cars, automated medicine, low cost energy etc. So, what we can do is borrow against that future to build stuff today
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Re:An Infinite Regress. Of Dumb: More Reflections on “Market...
by carsongross on Monday March 16, 2015 @06:46PM
(#9214995)
Yes, I understand productive debt and I have no beef with it (so long as no one is coerced into bailing out bad loans, which, of course, is constantly happening in the name of "systemic stability.")
If you think this has anything to do with the huge debt overhang in western societies... Well, I have an efficient market to sell you.
Read Keen. He explains it very well.