[ExI] I Miss The King of Extropia

[William Flynn Wallace]

Without debt Silicon Valley wouldn't exist, even renaissance Italy wouldn't
have existed without its banks.

​ John K Clark​

OK - but when a company gets very large, say like  GE, they can finance
their own R and D without having to issue stocks or bonds.  True?

Then why don't they go private so they can avoid all sorts of regulation
and can avoid paying dividends?  In cases like this I see no advantage to
debt.

bill w

On Thu, Jul 21, 2016 at 1:45 PM, John Clark <johnkclark at gmail.com> wrote:

> On Thu, Jul 21, 2016 at 2:11 PM, Stephen Van Sickle <sjv2006 at gmail.com>
> wrote:
>
>> ​> ​
>> Capital can be raised by sale of equity.  Debt can be convenient, but is
>> hardly necessary.
>>
>> ​There is no fundamental difference.  When a bank loans you ​money to
> buy a house the bank is in effect forming a partnership with you and taking
> an equity position on your future earning potential. Or you can think of it
> as issuing
>  Van Sickle
> ​ bonds that the bank buys, and you then use the money the bank gave you
> for the bonds to get your house. The future earning potential of my
> invention or the future earning potential of my salary, It's the same thing.
> ​
>
> S
> haria law
> ​ takes a dim view of debt and charging of interest, but it's odd that so
> many Extropians and fans of capitalism seem to agree. ​
>
>
>  John K Clark
>
>
>
>
>
>>
>> On Jul 20, 2016 5:51 PM, "John Clark" <johnkclark at gmail.com> wrote:
>>
>>> On Wed, Jul 20, 2016  PM, Stephen Van Sickle <sjv2006 at gmail.com> wrote:
>>>
>>> ​>> ​
>>>>> And without debt you couldn't have capitalism.
>>>>>
>>>>
>>>> ​> ​
>>>> Why not?
>>>>
>>>
>>> ​
>>> Capitalism is about capital,
>>> ​
>>> If I invent a brilliant new
>>> ​
>>> widget
>>> ​
>>> I'm going to need capital to mass produce them, so if I don't have the
>>> capital
>>> ​to do that ​
>>> I'm going to have to borrow some. And if I borrow something I'm going to
>>> have to give it back
>>> ​,​
>>> and that means I've incurred a debt. Without debt Silicon Valley
>>> wouldn't exist, even renaissance Italy wouldn't have existed without its
>>> banks.
>>>
>>> ​ John K Clark​
>>>
>>>
>>>
>>>
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