in the financial markets why would a borrower want to minimise liquidity?
Q. why would a borrower in the financial markets want to minimise liquidity?i have told that whilst a lender would always want to maximise liquidity- how would a borrower's liquidity preference depend on what he feels like? Bear in mind this is a question regarding financial markets in theory as its for univeristy
Asked by rubber losanges - Wed Feb 13 08:24:01 2008 - - 1 Answers - 0 Comments

A. from the borrowers point of view money is a resorse that cost money, minimising liquidity can mean. 1 the borrower has less debt and there fore les interest to pay (what good is it to you when your debt is hight paying 6% int and you have alot of money in the bank making 2%, your losing 4% so your making less profits). 2 the debt to equity ratio ( by lowering your debt you look more atractive) lets say you have 2.5m in debt and 1m in the bank. and the company sales are 30k a month. now lets say u pay 500k and you have 2m in debt and 500k in the bank it might look the same but with the lower debt the company is strogher it will be EZer for them to meet the payment, pay less interest, and show a more stable investment for when they realy… [cont.]
Answered by nsxplus1 - Wed Feb 13 11:22:03 2008

Why do the financial markets rise sharply on the news of government bailouts?
Q. We've seen this a few times over the past few years. This happened once again today. Except this time it was Greece. You would think the market would fall sharply because in the overall long term view, the markets are actually weakened by heavy government intervention. At least a libertarian would view it this way.
Asked by guitarman - Mon May 10 19:22:27 2010 - - 1 Answers - 0 Comments

A. The market likes certainty. Even a duct tape fix means things will hold together for a while. Now, is there going to be a big sell-off due to Obama and Congress letting the Bush tax cuts expire next year, as well as the new financial transaction tax? I am betting on it, and shorting the market, depending on how things look early summer.
Answered by Rizzo The Cleaner - Mon May 10 19:25:48 2010

Are the global financial markets going to collapse ?
Q. Global GDP is estimated to be about $60 trillion while the global derivative markets is estimated to be above $1000trillion. 1. do these derivatives have any intrinsic value ? 2. once a major bank or hedge fund collapses with say even $5trillion exposure what is the likely knock on effect to the rest to the rest of the derivative market ? 3. how can the global markets continue if these derivatives have no monetary value ? 4. what will be the likely effects on the currency markets if derivatives are shown to have no value ?
Asked by ??? - Mon Sep 22 04:52:15 2008 - - 2 Answers - 0 Comments

A. When asking Western school children about the significance of Waterloo, the answer will be something along the lines of the decisive battle between Napoleon and an English lead European coalition . In fact, the future of the European continent was perceived to depend upon the battle of Waterloo. If Napoleon won, France would have been confirmed as the undisputed master of Europe. If Napoleon was beaten, England would have become the leading power in Europe and greatly expand its sphere of influence. What Western school children are not taught - for obvious reasons - is the much bigger story behind the official narrative, the story of one of the biggest frauds in human history. Nathan Rothschild, the head of the English branch of the… [cont.]
Answered by Beyond brainwashing - Thu Sep 25 10:52:14 2008