Sentences with phrase «because assets financed»

The lower the cost approaches zero, and the longer the duration approaches eternity, the more the float resembles a perpetual, zero coupon bond which, as I discussed in Part I, will be worth almost nothing as a liability which is really cool because assets financed from the float could be worth a lot, just as happened in the case of Berkshire Hathaway.

Not exact matches

We don't want to fan debt - financed appreciation in the price of a major asset because when the escalation reverses, it can trigger a self - feeding spiral of debt defaults.

The bank sought to fill the gap with a $ 200,000 SBA loan, something Wald wanted to avoid at all costs, recalling the consequences of the $ 30,000 SBA loan he'd received in 1996 (and since paid off): NetForce had trouble securing the kind of financing it needed because the SBA had taken a blanket lien on all the company's assets.

«Goodwill is one of the riskiest assets that can be financed because it typically has no liquidation value,» an SBA spokesman explained last week.

The lien harms your ability to get financing because the government has the first claim to your assets.

The pitch to consumers is that they should buy housing because financing terms are favorable, even though the underlying assets — i.e., housing — remain unhealthy.

Deputy Finance Minister Alexei Moiseev told reporters that, «We categorize mining as a business activity» and went on to explain that because the proposed law contains no specific guidance on mining taxation, conventional tax laws will apply to the proceeds of digital asset mining operations.

Suppose the quantity of money is increased by tax reduction or government transfer payments, government expenditures remaining unchanged and the resulting deficit being financed by borrowing from the central bank or simply printing money [he adds a footnote, which Friedman lifted without direct attribution: «Open market operations are different, because they result merely in a substitution of one type of asset for another.»]»

2) The debt of financial companies is very important because they often borrow short - term to finance longer - term assets.

Even larger, more established security companies can have problems securing financing because of an owner's poor credit history or not having sufficient assets to satisfy demands for collateral.

Cuomo's hand - picked MTA chairman Joe Lhota gave a quick history lesson of the history of the authority, explaining that the city owns the assets of MTA sub-agency New York City Transit and the state only stepped in to fund the first capital plan in 1981 because the city's finances were a mess and the subways were a disaster.

Operating & finance leases Operating leases are useful if the lessee needs the equipment to be updated or replaced frequently as: they run for shorter, specific periods shorter than the full economic life of the asset; the lessee is not liable for financing of the asset's full value; the lessee has use of the equipment, but not full ownership; and because the residual value belongs to the lessor.

They occur because we have a debt - fueled expansion in some major asset that is a temporarily virtuous cycle, until players begin relying on capital gains to keep their position financed.

Difficulties happen in the «real economy» when current assets have a difficult time getting financed, and consumer durable purchases and capital investments get delayed because financing is not available at reasonable prices.

The commercial paper market, a vital conduit of financing for U.S. companies, has shrunk dramatically in the past two weeks because of worries that assets in the ABCP collateral pool included tainted subprime mortgages.

What is better, by separating long - term finance from deposits, we would eliminate that source of most panics, because they occur when short - term liabilities finance long - term assets.

This week's picks for the best investing and personal finance articles from around the web — a day early this week because we'll have updates to our Dynamic Asset Allocation and Sector Rotation strateiges tomorrow.

Because of potential buyers» inability to obtain financing due to the credit crunch, FRT may see its assets become more and more illiquid - a lack of lending creates a lack of able buyers, which makes it more difficult for FRT to sell its properties.

As a history grad I always wonder how so many people in finance have so much faith in paper money, and usually don't even own a small amount of hard assets «because they don't have a real return».

When you finance your company via personal credit you are risking quite a lot because you are assuming total liability and if your company is ever sued or goes under, you are stuck with the financial burden and may lose personal assets while also severely damaging your personal credit.

In class (I take personal finance in school), I've learned about various ways of investing, such as dollar cost averaging, diversification, balancing assets, and now I honestly do trust those three ways of investing more because as you have mentioned, Walter has used diversification.

Ironically, using UTMA to put college savings in your child's name can make it more difficult to finance higher education, because the financial aid formula in effect imposes a penalty on assets owned by the child.

This means that taking premium finance loans may be a negative legal asset protection move for affluent individuals and business owners because it subjects other valuable assets to liability to pay the loan.

This piece will have echoes from my recent piece The Bane of Broken Balance Sheets, where I tried to point out why many assets are trading below equilibrium levels, but also why it is rational for them to be so valued, because of the lack of long - term financing capacity.

2) The debt of financial companies is very important because they often borrow short - term to finance longer - term assets.

And, every liability is someone else's asset, but not vice-versa, because assets owned free and clear are equity - financed.

Short term financing, where the portfolio's «market value» gets measured on a daily basis has a much bigger impact, because as prices fall, liquidation of assets can feed a collapse of prices.

Games developers typically struggle to raise debt finance because they have relatively few assets and little financial track record.

This is because litigation finance removes the cost of the dispute from the claimant's financial statements, thereby transforming the litigation into an asset, freeing up the cash for more strategic uses and boosting the organisation's financial metrics.

Vigilance is required because the means for these and other criminal activities may be transactions for which lawyers commonly provide services such as: establishing, purchasing or selling business entities; arranging financing for the purchase or sale or operation of business entities; arranging financing for the purchase or sale of business assets; and purchasing and selling real estate.

Purchasing and maintaining a policy is so very important because it is the only way to make sure that you, your vehicle, and your personal finances and assets remain protected while you are driving on the roadways.

«Ownership of virtual currency is very risky and full of speculation because there is no authority responsible,» the central banker continues, «there is no official administrator, there is no underlying asset underlying virtual currency price and trading value is very volatile so vulnerable to the risk bubble and prone to be used as a means of washing money and financing of terrorism, so that it can affect the stability of the financial system and harm the public.

Hence, the Indian finance ministry's argument in that Bitcoin and other cryptocurrencies are Ponzi scheme - like because they do not have assets backing their value is flawed, as the same argument can be applied to fiat currencies.

Finance resume writing is challenging because it advertises you as a potential asset for a company you are applying to.