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Subject:
shortage of finance
Category: Business and Money > Finance Asked by: dancingfeather-ga List Price: $5.00 |
Posted:
11 Mar 2005 13:21 PST
Expires: 10 Apr 2005 14:21 PDT Question ID: 492813 |
Do you think there could be a shortage of finance for new ventures? Should the government help to provide such finance and if so how? |
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There is no answer at this time. |
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Subject:
Re: shortage of finance
From: financeeco-ga on 14 Mar 2005 16:33 PST |
Do you think there could be a shortage of finance for new ventures? NO! Look how low interest rates are. That means financing is relatively easy to come by. Look at the loose monetary policy of the last five years. If anything, there's too much liquidity. Should the government help to provide such finance and if so how? NO! The US has the most efficient capital market in the world. Financial intermediaries exist to provide financing to new enterprises. The government can't do a better (i.e., more efficient, more value-creating) job than the private sector. The government would do nothing but subsidize money-losing ventures, since financial intermediaries are constantly looking for businesses to fund. |
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