| Thursday, September 18, 2008 - 03:02 am |
World Bank 20.00B SC$ 30.0% 2310/08/15
This is a loan that came up in the list of the loans that I have given out. Unlike the other loans, there is no link attached. What gives? Where did this money go, and is it possible to default on a loan?
I keep watching the news, about all these toxic securities, and I'm kinda worried about a borrower that I can't find.
| Thursday, September 18, 2008 - 04:04 pm |
It's the Game's Central Bank. It's here to correct liquidity problems - lack of loan offers.
| Saturday, September 20, 2008 - 10:33 am |
Would there be any advice out there as to criteria for considering offering loans? Should you have a minimum float in your country, I presume that as long as you don't anticipate needing funds offered, for several years, there's no further risk (eg defaults). I think I understand the "lower risk = lower gain" philosophy, but offering multiple 20's of B SC$ seems like a bit of caution would be prudent as opposed to chucking it down in Vegas. I also get the impression that these loan offers may not be taken up immediately, so could you forget an offer, presume you still had cash in the bank and then suddenly incur a large cash flow problem? or is the offer deducted from your balance sheet immediately whether is taken up or not, in which case if it isn't, who gets the interest on all the dead cash?
Hmmm... is there a wiki link or some such for this topic? Thanks one and all.
| Sunday, September 21, 2008 - 06:30 am |
Errr, you can go into -ve's when you offer a loan, and it's accepted. IOW, it's NOT deducted from your cash when offered.
I was getting soo angry, b/c my country was taking out loans, even though I had 100-200B cash, they were small, mind you, but still annoying as it's wasted cash - since I'd repay them right away. So, now, my float is 1T, but I'm sure you can get away with any amount over 200B, as long as you don't get any large purchases of items your country needs coming.
Also, offering up two 20B loans, would go to one person, requesting a 40B loan, and a 40B would be split into two 20B's if that's what's needed. I offered two 200B's, and got it split into 139B and 261B... so no defense by limiting amounts, unless you also differentiate the term of payback.
| Sunday, September 21, 2008 - 08:15 pm |
Thanks Andreja Gligorijevic, it does seem pointless to offer loans and if you're like me, forget things, only to go -ve and recieve loans, so quite a comfortable float seems sense, >200B you reckon. But when you say about defence by limiting amounts, do you mean you could lose your loan by the borrower going into liquidation and by limiting your offers to little packets you minimise your chance of loss (taking on board your comment about differentiating payback terms is the only way to do this)? haven't I read the GM takes over bankrupt countries and sorts this out, or folded corps debts are transfered to the owning country/CEO? If loans are secure then they seem a very simple maths question, if not then hey, have a go on the stocks, better potential returns.
| Sunday, September 21, 2008 - 08:19 pm |
And Jonh R, would you say there are any incentives in offering loans (and helping the liquidity problem) ?
| Sunday, September 21, 2008 - 09:08 pm |
(Avoid) Financial Services and (gain) Loan Interest.