04-01-2009, 07:02 PM
David Guyatt Wrote:FINANCE AND BANKING
You have 2 cows.
You use options to leverage them into 60 cows at the usual ratio of 30:1.
You convince a penniless farmer with no land to buy and grass the cows.
You lend him $25 million to buy the land using "his" sixty cows as collateral against the loan.
You package his farm and "herd" and future capital and interest repayments into a wrapped bond issue with nominal value of $250 million.
You sell said bond issue around the world and reap $250 million minus legal expenses.
You fly to your new $30 [million] mansion in Bermuda and sip Rum punch for the rest of eternity.
David,
This is brilliant!
"History records that the Money Changers have used every form of abuse, intrigue, deceit and violent means possible to maintain their control over governments by controlling money and its issuance." --James Madison