Quote:
Originally Posted by roachboy
what exactly constitutes "fiscally responsible" in a situation that (a) threatens the global capital flow system as a whole on the one hand, but (b) cannot apparently be given a coherent or stable value on the other? no-one seems to know how big a problem this is because everyone---all the rational market actors in this the best of all possible worlds which we call capitalism 2008 stylee--everyone was lying about the values involved with these devices. so what's a "responsible" action here?
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Some people believe that fiscally responsible means spending only money you have, expenses never exceed income. When capital projects are to be undertaken, either savings or generating credit lines based on reasonable debt to value ratios, and the ability for the borrower to repay within the confines of the income and expenditures.
Some people believe that fiscally responsible means using other people's money to pay your expenses and generate your income. Expenses can exceed income as in the long term income will grow over time, and borrowing at low interest rates can bridge the gap. When capital projects are to be undertaken money is borrowed and refinanced and refinanced to draw equity to pay down other expenses.
Some people believe that fiscally responsible means making sure you cover your cashflow. Income and expenses need to be generated and paid, and so long as everything juggles just right, all markers and debts are paid the absolute minimum.
At some point in time, when you stick your hand into your pocket and you can't pull out $5 bill to pay for that Matcha Green Tea latte with skim milk... I'd hope that's when you realize that fiscally responsibile means something more than paying your bills at the end of the month each and every month.
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