Do Low Interest Rates Ensure High Asset Prices?

Rnd, industry cofinancing, Prizes.

I guess you could say non cash assets, right?

So what is the post money valuation?

Local finance are bankrolling the industrial promotion program.

And so that cash ended up here.

Or, another way to think about it is the cost of production.

And so after that offering, well, our pre money valuation was 30 million and our post money is now 40 million.

So, Japan had a fiscal real estate crisis back in the late '80s.

They want to encourage high volume purchases, and so they have stepped pricing that is oriented to create volume.

So once again, it's just a loan to someone else.

It turns out we made this pretty easy.

We have 3 billion in loans.

That the market just because of how this guy has capitalized his company if they just apprised a superficial price to earnings of 10 to both companies, it's willing to say that this asset is worth 279,000, and this asset's only worth 210,000, even though they're identical assets!

I could actually price on specific customer segments or on features I know they need.

I have factory tools worth 500,000, and then that cash will go away.

So, in that situation there will be 102 of your money so, at the 950 dollar price, you're essentially lending the government money at 5.3

So the first one I'd like to parce is the idea of market value.

What we have is one thing and what we are is quite another.

And then if we go to, let's say, 2003.

So let's call that market equity.

So this is lending some cash.

Interest is nothing but rent.

The money which people can take has lower interest rate, people can repay it without fear.

To get some future benefit.

let me give you that piece of terminology, it just means net asset value.

So those are the two side effects of high utilization.

At the time, there was a microlending group in the village that gave her a 65 dollar loan.

So what is the value per share?

And there's only 10 shares. So they're valuing the assets at 500,000. And this is of course the market value of the assets.

Price to Earnings, all else equal and that's a big thing all else equal, the lower the Price to Earnings, you're paying less for something.

Well I would have 50,000 left over.

These are demand accounts.

So for example, cash is an asset.

No industry. No capital. Money is worthless.

Whether people will continue to loan them money.

Now, you might remember from previous videos that the book value of the assets in Ben's company are only 140,000! 20,000 of cash, 100,000 of inventory, 20,000 of... this is not equity, this is equipment I should call it.

He has no claim to the property.

The price of gold fluctuates daily.

So this is the treasury yield curve.

But essentially what happened is the investors in the mortgage backed securities provided the money to the special purpose entity to essentially loan to the borrowers.

While qualified persons qualified persons are interested in investing and have money to invest.

Price

Mass production reduced the price of many goods.

The bank is going to be able to fulfill its promise.