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Sure sure.. good point.. but my grand pa always faithful to the real-based economy always told me not to buy anything on debt... but pay up-front everything.. no mortgages, no credit card nothing..

I broke the rule and I got a credit-card.. which I try to cover with 10 times the credit int he account..He still loks at me as "know-nothing of the world" (he is absolutely right I have never been in a fascist concentration camp, he has)

So I count as if all the business go south .. then I know how much I lost at the most... So 10k is the msot I am ready to lose... so I would only take the equivalent on shares. It would be 2000 euros... a third of a share... I can push up to half a share.

I always do numbers like this.. if banks would do it like that we would not be in the mess we are.. but there again, capitalism would be a very different beast :)

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Tue Nov 11th, 2008 at 05:04:18 PM EST
[ Parent ]
... the amount put into the shares (units) is the most that people buying units could lose. The leverage would be by the LLC, not by the individual owners.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Tue Nov 11th, 2008 at 05:22:25 PM EST
[ Parent ]
We do not have to back it up if we create it?

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Wed Nov 12th, 2008 at 01:54:11 AM EST
[ Parent ]
It would be backed by the physical asset ... that's what the equity share is for, so that there is a buffer on the value of the asset if the operation goes belly up.

The greater the equity share, the more the security of the debt share, all things equal ... of course, for different countries, all else is not equal, and if a feed-in tariff is in place, the downside risk of being unable to service the capital stake is much less.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Wed Nov 12th, 2008 at 02:15:25 PM EST
[ Parent ]

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