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I can think of quite a few ways for something to be worth nothing, or less than that - for instance, would you be willing to take ownership of, and responsibili
by DuskStar 7y ago
I can think of quite a few ways for something to be worth nothing, or less than that - for instance, would you be willing to take ownership of, and responsibility for, a lovely stretch of a former canal in the Niagara Falls area? [0] And that's ignoring synthetics, as of course debt has negative value.
0: https://en.wikipedia.org/wiki/Love_Canal https://en.wikipedia.org/wiki/Love_Canal
- benj111 7y ago"of course debt has negative value" Does it? You are basically paid in advance, surely that should be getting taken into account. Yes I suppose debt can have a negative value if the interest rate is too high, but if you borrow money at a low interest rate to start the next google, that debt doesn't seem to have negative value to me.
- Nasrudith 7y agoThat is the loan not the debt. A loan is a combination of the real payment and debt which has utility. Without the real payment only the negative debt remains.
- benj111 7y agoYes, but they go together as a package, you can't separate it out, you have got something in return for that debt. Most (all?) assets have liabilities attached, that gold bar has warehousing and insurance costs, that diamond mine has employees that want paying. It isn't reasonable to argue that they have negative value, because you're ignoring the positive value that comes with it.
- DuskStar 7y ago> Most (all?) assets have liabilities attached, The point is that not all liabilities have assets attached.