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Do you trust the Global banking system?

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striker
Super Contributor
- DEP, if you're looking for a yes or no answer to your original question , my answer is absolutely no. The Banks are operating in cohoots with their governments and hoodwinking the world. QE is nothing more than a Ponzi scheme and frankly I dont believe
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DEP
Super Contributor
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DEP
Super Contributor
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Rams
Super Contributor
well, according to your equation, the "no" cancells out on both sides, so credit = growth. but the point is that credit on its own is useles...its all about gearing, so it must be linked to assets/equity?
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THRESHOLD
Super Contributor
This is not algebra 101. This is a fundamental error of argument on your part. You cannot assume that the lack of a negative = a positive.
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THRESHOLD
Super Contributor
And now for a basic lesson in finance (101) Credit IS gearing!!
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THRESHOLD
Super Contributor
The assets are there - they need the credit to be put to use. This, however turns into a long discussion that I couldn't be bothered to embark upon.
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Rams
Super Contributor
Definition of 'Gearing' A fundamental analysis ratio of a company's level of long-term debt compared to its equity capital. Gearing is expressed in percentage form. Read more: http://www.investopedia.com/terms/g/gearing.asp#ixzz206wzRyzV
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THRESHOLD
Super Contributor
The assets are there - they need the credit to be put to use. This, however turns into a long discussion that I couldn't be bothered to embark upon.
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Rams
Super Contributor
and thats the point....no assets=no credit
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THRESHOLD
Super Contributor
Wow - (a) you can miss the point and (b) again credit "IS GEARING"
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Rams
Super Contributor
and the more profit i make, the more i grow and the more assets i can buy and the more credit i can get and the greater the return on my equity/assets and the more i grow...
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THRESHOLD
Super Contributor
I am not gettinginto another of these arguments. Consider what ever definition you have found carefully and think about my point. I will be happy to discuss it ater that; BUT rationally. Remember my point about equity being treated as "credit?" Well "GEARING" is a classic example.
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THRESHOLD
Super Contributor
One more imporatan point: I never said gearing is credit. I said credit is gearing.
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Rams
Super Contributor
you cannot gear credit without assets...so credit is not gearing if there are no assets so CREDIT IS NOT GEARING Definition of 'Credit' 1. A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. The term also refers to the borrowing capacity of an individual or company. Read more: http://www.investopedia.com/terms/c/credit.asp#ixzz2072VoEWm
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THRESHOLD
Super Contributor
Gearing is the use of assets for which you has not paid (credit.) The definition relates long term debt to equity capital. It shows "systemic" exposure within the business. Same thing. No credit - no gearing! You would use the assets you bought for cash. Without adquate cash - you would be exluded from that business. So you borrow. So...? What is you point?
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DST
Super Contributor
Join Fundamentals Webinar #2 (rerun) on Thurs 12h30 for (among much else) a view on how the world works.
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DEP
Super Contributor
Tell us more about this... who's presenting it?
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