mcnees287 | 13 years ago | on: Kim Dotcom: Joe Biden Ordered the Megaupload Shutdown
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mcnees287 | 13 years ago | on: Airbus to Assemble Jets in Mobile, Alabama; Start of a Global Labor War?
mcnees287 | 13 years ago | on: JPMorgan Trading Loss May Reach $9 Billion
mcnees287 | 13 years ago | on: Fed: Americans' wealth dropped 40 percent
mcnees287 | 13 years ago | on: Ask HN: Why Net 30? Why not pay immediately?
Often if a firm is willing (able) to pay upfront in cash they will receive a discount such as being required to pay only 0.8x, for example. The key point is that the true cost of the goods is in fact 0.8x. while x is the financed cost.
Net 30,15 and so on is a form of financing the purchase to the purchasing company. The rate that one must pay to get the goods today and pay in thirty or fifteen days should be compared to other forms of financing. A firm should consult a bank for instance to determine if they can finance the purchase at a lower rate.
mcnees287 | 14 years ago | on: Instagram is "worth" more than the New York Times
mcnees287 | 14 years ago | on: For the first time ever, the number of poor people is declining everywhere
mcnees287 | 14 years ago | on: Ask HN: do you regularly use stock screening software? Any favorite advice?
I would recommend not playing with any money you're not 100% okay with loosing entirely.
mcnees287 | 14 years ago | on: 74.1% yield on 2-year Greek government bonds
They will have to pay a much higher rate in the future. Making default expensive.
mcnees287 | 14 years ago | on: 74.1% yield on 2-year Greek government bonds
mcnees287 | 14 years ago | on: HP to produce one more batch of Touchpads
mcnees287 | 15 years ago | on: Google plays the yield curve
Google may be altering their capital structure to include more debt which will do a few things, 1) lower to firms cost of funds and allow it to better operate in a lower interest rate environment. 2) Debt offers firms a tax shield, by putting out some debt,Google can lower its effective tax rate.
With interest rates at historic lows it makes sense to borrow as much as you can. We have negative real interest rates currently. If you borrow at a big economy like Google, paying back the debt will be much easier in this environment and the lenders stand to loose on a purchasing power basis.
mcnees287 | 15 years ago | on: Rule of 72
mcnees287 | 15 years ago | on: Sold my dipshit company for $5m, where to invest?
3. This is not a risk free strategy. Interest rate risk is your biggest problem here. Although the Ladder will work in the current environment (interest rate anticipation), their is a good risk of higher inflation that could happen rather quickly. You will be screwed if your in fixed payment securities. The Bullet may be a better strategy here.
To the OP. I would never listen to investment advice on the internet. Finance is complicated and easy to mess up. That said, I would invest in some options in your position, if you choose to play the markets. Don't do this unless you know what your doing however. Also be careful with financial advisors. Some, but not all are the chiropractors of the finance world. The CFA designation is viable here.
You will probably be able to find better returns outside of financial markets, but it all depends.
This is a classic case of concentrated benefits with dispersed cost. It's a messed up situation, but not corrupt.