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It's Economics vs Thermodynamics. Thermodynamics wins. -
Re: Buiter, FT Alphaville discovers equity-based financing; usury; riba; debt-equity swap
I have got to say its an interesting concept... Also, puts the onus on both parties to not inflate bubbles/overpay bc both are at risk of losing...
Kind of puts a bank as a partner not just a pariah waiting for you to default so that it can erase all the interest you paid and you get nothing.... The bank gets its money as rent and you get something in return; true equity (not phantom equity which is in place as long as you continue paying) and a place to live. -
Re: Buiter, FT Alphaville discovers equity-based financing; usury; riba; debt-equity swap
Indeed. I am a big advocate. A huge debt-for-equity swap would basically remove much of the problem. Chris Coles (I think) has advocated equity based business financing at the grass roots.It's Economics vs Thermodynamics. Thermodynamics wins.Comment
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