Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Deuce
I, OTOH, have more rigid requirements before I'm happy.

Are you telling me that if you showed up at a dealership with $25,000 worth of gold (consider the implications of that piece of syntax) that the dealer wouldn't take it? Sure they would, after converting the gold to dollars and discounting it for their hassle and the poor performance of gold. Thus you are quite free to carry gold coins or paper certificates, the problem is you'll have to sell them at a discount.

I OTOH might be quite happy with a note on a basket of bonds with a good record of appreciation. Some people might pay me a premium for my notes based upon their perception of the value. They might not therefore need 100% reserve-backing based upon that particular transaction because the reserve amount need only be the value of the note.

Pooled risk has NEVER operated on 100% reserve backing. That is why it is a valuable capital allocation and risk management service.

363 posted on 12/10/2001 7:25:22 AM PST by Carry_Okie
[ Post Reply | Private Reply | To 361 | View Replies ]


To: Carry_Okie
Pooled risk has NEVER operated on 100% reserve backing.

The original quote in question had to do with money, not pooled risk --- so I'm not sure what you mean by this.

See your post #357 for original quote

368 posted on 12/10/2001 12:12:37 PM PST by Deuce
[ Post Reply | Private Reply | To 363 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson