Just like your trading hero, you cannot admit to being wrong, even when you know that it is so. Creative indeed. You two have so much in common and must have a lot to talk about. "Eruditely," of course.Quote from marketsurfer:
i don't agree. casting dispersions is used and is proper in this context--although creative--something you don't understand.
Quote from Thunderdog:
Just like your trading hero, you cannot admit to being wrong, even when you know that it is so. Creative indeed. You two have so much in common and must have a lot to talk about. "Eruditely," of course.
Quote from Thunderdog:
Apples and oranges.
Yes, though both are from same group ie fruit.
When you invest in a fund, either wisely or with Mr. Niederhoffer, you are generally looking to generate above market returns. You are essentially providing the fund with equity financing.
You invest your funds in an effort to generate revenue.
However, a bank normally only charges a predefined rate of interest. With debt financing, it does not share in your upside if you happen to, say, buy a house and sell it for double in a couple of years. Therefore, since it does not share in your upside, there is little rationale for it to share in your potential downside.
A bank invests its funds (lending it to you) in an effort to generate revenue.
That is the basic difference between equity financing and debt financing.
TY! I did know that, I just made a comparison between the 2 forms of investments, where 1 is secured (at least partially) and another one carries no security or whatsoever apart from previous performance stats, like our credit scores
The difference is not only in the security, but also in the nature of the participation. In conventional lending, the creditor does not participate in any windfall upside, therefore, it is only fair and balanced that it should not have to participate in any unexpected downside. Quid pro quo, boyo. There's equity risk and then there's credit risk. Did I mention apples and oranges?
Groovy.Quote from JSSPMK:
Actually, I just latched on to what you were saying
