Page 1 of 1
Mark Cuban's idea for the economy
Posted: Thu Aug 11, 2011 11:51 am
by Storm
This seems like an interesting idea - basically a government run market for credit for private companies. My main question is "doesn't the corporate bond market already allow companies to do this?"
http://blogmaverick.com/2011/08/10/an-i ... o-discuss/
Re: Mark Cuban's idea for the economy
Posted: Thu Aug 11, 2011 12:34 pm
by stone
Storm, I agree with your point about the bond market. I suppose he must be thinking that the difference between 5% and 0% lending is enough to get companies to expand. I can't help thinking that so many companies have spare productive capacity / unsold inventory as it is. Would they want to hire more people? I thought we now have a supply glut and a demand shortage. I'd have thought that just paying out a citizen's dividend would have more benefit for economic growth.