Posted 1/26/2012 21:42 (#2188335 - in reply to #2188089) Subject: RE: Printing money and thereafter
Tim in WI - 1/26/2012 19:28
Bankers don't deal in 'value', they deal in dollars. IMO, they don't care about the worth of the dollars they get back, as long as they get paid back.
If they see dollars declining in value fast enough, I think their counter would be higher interest rates.
There are other folks who post here that probably have a much better handle on it than I do.
When you borrow , you sign an security agreement listing your assets, those become the banks assets, so what ever you have listed on a finacial statement (assets) usaully become the banks assets, they have market value. this is why you should only pledge so much on your security agreement, meaning no more then what it takes to get the loan..and as soon as you get the loan paid , terminate the security agreement. ( the one filed with the state)
Printing money and thereafter
