kdh

Members
  • Content count

    3,657
  • Joined

  • Last visited

Community Reputation

34 Kiss-ass

About kdh

  • Rank
    Super Anarchist

Recent Profile Visitors

The recent visitors block is disabled and is not being shown to other users.

  1. Of course you jest. My cherry makes a good man cave but there's nothing like a Herreshoff interior.
  2. We should remember that endowments and foundations aren't taxed, so any interest on debt held by them is tax-exempt.
  3. I'll have my people talk to your people.
  4. This makes three times someone's pointed this out. Legs, in addition to introducing me to "The Man," can you teach me how to "route loans through tax havens?"
  5. I'm no Wall St fan boy. I think a glaring problem in 2008 was the banks were huge holders of mortgage debt. To me Volcker is right: financial institutions should be investors or dealers but not both. I'm also aware of the benefits of white Anglo Saxon privilege. But it's all too easy to be cynical and associate wealth with crime and greed. I won't.
  6. His data on living standards are irrefutable. I just watched a Frontline on the plight of Dayton Ohio. A Chinese billionaire set up a car parts company there and gave jobs to many that had been laid off when GM left for cheaper labor elsewhere. Difference: he pays $12 an hour rather than the $35 workers were making. When asked about the wages he points out that they are 6 times what Chinese workers make, 3 times Mexican workers, twice Japanese workers. Unskilled labor is in huge supply globally so the price is low. And machines to do the same work are cheaper still. We might want to consider that in Silicon Valley and in New York wages are good because workers are providing innovation and skills that aren't widely available so are priced high.
  7. I confess that I stop listening when anyone mentions Stiglitz. And to repeat what was written earlier: though there is a tax deduction for interest the buyer of debt pays tax on the interest so it's a wash to society. What caused 2008 was a housing bubble, exacerbated by the personal tax deduction on mortgage interest.
  8. I think you're right, Rob, about the Hinckley owners. I forgot about Bain. That was a home run as it was just after the introduction of the Picnic Boat. My first trip on my new boat was Southwest Harbor to Nantucket Harbor in April. When they got me on the phone after the passage they sounded like worried mothers, relieved to know I was safe.
  9. I'm surprised that Joe Sixpack and Suzy Creamcheese aren't complaining about archaic "accredited investor" rules that associate not being wealthy with being too dumb to evaluate a private equity investment. https://www.forbes.com/sites/johnberlau/2018/08/27/let-middle-class-investors-join-the-accredited-club
  10. Maybe one of you that was sentient in the 60s can tell me who "The Man" is. I'd like to meet him.
  11. Just remember that there is a buyer of that debt that goes into the deal with eyes open. Defaults happen. I do agree that the mere existence of debt, where failure is somewhat catastrophic, is a destabilizing component of capitalism, and debt failure can be systemic. This has nothing to do with fancy derivatives, just loans where money is borrowed and paid back with interest. For my personal investments I have exposure only to equity and treasuries, the latter effectively cash that pays interest.
  12. Legs, I respect your opinion. Mine is that capitalism is a messy way to allocate investment but with appropriate regulation seems to me the best we have. How is leverage, or borrowing money, a "scam?" My understanding of the Hinckley situation is that the first group of investors lost their shirts, the second group have done well. Customers are not as happy with client service as they were when it was a family business, including myself, but I'm delighted the company is still around. Not clear what the trajectory would have been without the infusion of capital and the focus on high margin power boats.
  13. Sometimes a business is not worth more than the carcass. Hinckley have had two sets of private equity partners, and have been wildly successful. The basic reality: There are plenty of well maintained used boats on the market to satisfy demand. The new production sailboat business sucks.
  14. kdh

    Show your boat not sailing

    Just before being splashed in 2006.