[OPE] How finance explains equity to itself

"The essence of capitalism is capitalizing-bringing forward the future value of cash to the present so that society can grow more quickly by taking risks. It goes back to the Dutchmen in the 16th century, sitting at their coffeehouses in Amsterdam and Leiden, loaning each other money for a guaranteed return. Someone said, "I'll give you a little higher return if you give me a piece of the action"-and equity was invented. That had the effect of bringing forward, into real cash today, the net present value of future earnings. That levered society and allowed it to grow at a much higher rate than it would otherwise have. Equity was a very clever invention, and we are not going to give it up. This is the way people are. This is the way commerce works and will continue to work unless capitalism ends. And that won't happen, regardless of what you read in the press." http://www.mckinseyquarterly.com/Strategy/Growth/Creative_destruction_and_the_financial_crisis_An_interview_with_Richard_Foster_2268

When I'm ridin' round the world
and I'm doin' this and I'm signing that
and I'm tryin' to make some girl
who tells me baby better come back later next week
'cause you see I'm on losing streak.
I can't get no, oh no no no.
Hey hey hey, that's what I say.

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Received on Mon Dec 29 16:26:17 2008