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Archive for November, 2009

Limited income necessitates choice

Saturday, November 7th, 2009

Because of scarcity, we all have limited incomes. The limited nature of our income requires us to make choices about which goods we will and will not buy. When more of one good or service is bought, we must buy less of some other goods if we are to stay within our budget.

The underlying asset being bought

Friday, November 6th, 2009

For retail borrowers this might be a car or a motorcycle. In the corporate world this includes assets as diverse as airplanes, ships and machinery. The main issue here is that the borrower will carry the asset on its own balance sheet at cost, less any depreciation. This provides a realistic assessment of economic value [...]

Title

Thursday, November 5th, 2009

Establishing title is an issue in many emerging markets where no central land registry exists. It is a very real problem in Japan, Eastern Europe, much of Asia and theĀ  countries that comprised the former Soviet Union.