Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
It can work as long as not all of the proceeds are reinvested. A consol paying 7 % can be perfectly sustainable. Expecting to be able to take the payout from the consol and use it to buy another 7 % consol, and so on most certainly is not.

Compounding interest is usually unsustainable, which is why a prudent lender should insist that interest be paid as it accrues.

This, incidentally, breaks money neutrality. Hard.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Mar 13th, 2012 at 10:24:53 AM EST
[ Parent ]

Others have rated this comment as follows:

Display:

Top Diaries

The UK's slide into despair

by tyronen - Mar 25
19 comments

Après May

by Frank Schnittger - Mar 22
81 comments

The gloves are off

by Frank Schnittger - Mar 20
32 comments

Brexit Fun: The John Bercow Show

by Oui - Mar 18
21 comments

Healing Earth (Through the Waters)

by gmoke - Mar 19
2 comments

No justice for Bloody Sunday

by IdiotSavant - Mar 14
2 comments

People playing games

by Frank Schnittger - Mar 15
50 comments

Occasional Series