sharetrader
Page 7 of 7 FirstFirst ... 34567
Results 91 to 92 of 92
  1. #91
    Permanent Newbie
    Join Date
    Mar 2010
    Posts
    871

    Default

    Admittedly I don't understand how it all works but my basic understanding is that banks will need to have more equity as a percentage of total assets. This is to reduce risk to depositors who have no govt guarantee or depositors insurance. Doesn't sound like a bad idea to me. But I guess anything that might reduce the increase in debt and asset prices is not a good idea according to economists and banks who are well known for their responsible lending.

  2. #92
    An Awesome Cool Cat winner69's Avatar
    Join Date
    Jun 2001
    Location
    , , .
    Posts
    23,372

    Default

    Quote Originally Posted by Aaron View Post
    Admittedly I don't understand how it all works but my basic understanding is that banks will need to have more equity as a percentage of total assets. This is to reduce risk to depositors who have no govt guarantee or depositors insurance. Doesn't sound like a bad idea to me. But I guess anything that might reduce the increase in debt and asset prices is not a good idea according to economists and banks who are well known for their responsible lending.
    I agree with you Aaron

    Hypothetical question for anybody interested: What would you say if someone offered you an investment with a promised pre-tax return of close to say 20% pa over many years?.

    You mighty say: “How much can I buy?” or like most sensible people: “What is the catch?”

    Think about it
    ”You can't cross the sea merely by standing and staring at the water.” -Rabindranath Tagore

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •