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So you can create infinite value by borrowing more and more money. I'd love to create lots of value for you by borrowing money from you. I would even consent t
by kbutler 7y ago
So you can create infinite value by borrowing more and more money.
I'd love to create lots of value for you by borrowing money from you. I would even consent to not destroy any of that value through making payments.
The bond is worth $300b to the bondholders, but only because it is expected to be paid back and is secured by the $300b assets. You can prove that by assuming those assets disappeared: how much is the bond (or the company) worth to the bondholders then?
- bryanlarsen 7y agoEvery single fair transaction has a net value of $0. If I buy a chocolate bar for $1 that's worth a dollar to me, I'm up one chocolate bar worth $1 and down a dollar. No net worth change, but it is validation the chocolate bar is worth $1.