After Pimco Top Dog Gross quit, it is good to hear James Grant's view on bonds. I have not been in the market for a few years, so I am not paying much attention, only to know the prognosis is not good, but the patient is evil anyway.
But the topic of bonds, and interest rates, is about the yield on loans. AS Grant knows it very well me the bond markets that lead us down next. O dear, for business to business working credit, what if bank credit dries up?
That would be a problem. The solution is anarchy, where you introduce enough credit yourself. How so? Stop accepting credit cards as payment, stop demanding prepayment, and start extending credit, 30 days to pay. And at no interest. Yes, you would have to develop a new skill, and that is checking credit, in essence getting to know all of your customers, and become somewhat responsible for their success. This is the way is was before we had these crazy financial things happening.
Next beging to demand your suppliers extend you credit, so before the crunch you have already established a line with the suppliers, and encourage them to do so, since "you have done so your self."
If as Grant says it goes, then we'll have ot create our own sources of credit, if the bank credit dries up. We did it before, it is natural, and we can do it again, the sooner the better.
Feel free to forward this by email to three of your friends.
But the topic of bonds, and interest rates, is about the yield on loans. AS Grant knows it very well me the bond markets that lead us down next. O dear, for business to business working credit, what if bank credit dries up?
That would be a problem. The solution is anarchy, where you introduce enough credit yourself. How so? Stop accepting credit cards as payment, stop demanding prepayment, and start extending credit, 30 days to pay. And at no interest. Yes, you would have to develop a new skill, and that is checking credit, in essence getting to know all of your customers, and become somewhat responsible for their success. This is the way is was before we had these crazy financial things happening.
Next beging to demand your suppliers extend you credit, so before the crunch you have already established a line with the suppliers, and encourage them to do so, since "you have done so your self."
If as Grant says it goes, then we'll have ot create our own sources of credit, if the bank credit dries up. We did it before, it is natural, and we can do it again, the sooner the better.
Feel free to forward this by email to three of your friends.
0 comments:
Post a Comment