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View Diary: Health Care Friday (126 comments)

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  •  Would that revenue have been raised in the bond (0+ / 0-)


    The collection of FICA premiums is compulsory; bond sales are not.

    •  Considering that brokers have been trying (0+ / 0-)

      to convince states to bond already built infra-structure, such as highways and parks and airports and convention centers, in order to cover current financial needs, it's my guess that there's keen interest in investing in government bonds.  They are, after all, a guaranteed revenue stream, backed not only by the capital assets but by governments' ability to tax, if nothing else works.

      That investors are keen on risk is a myth.  What they are after is guaranteed revenue whose size can be increased by asserting risk.  Personally, I've never understood why a riskier enterprise should be balanced out by a higher return.  If the project is marginal to begin with, making people pay a higher rate of interest only increases the chance it will fail.  Which leads me to the conclusion that much American enterprise is destined to fail.

      Why would that be?  Well, every failure means that somebody else gets a chance at a bargain.  Every failure is someone else's opportunity.  Vide NOLA.

      How do you tell a predator from a protector? The predator will eat you sooner rather than later.

      by hannah on Fri Feb 20, 2009 at 11:46:33 AM PST

      [ Parent ]

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