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re: Financing is OOC

Posted on 5/4/19 at 6:58 pm to
Posted by slackster
Houston
Member since Mar 2009
87085 posts
Posted on 5/4/19 at 6:58 pm to
quote:

The underlying asset determines the interest rate. It absolutely matters.

You have to settle on an asset before you have all of the information to determine how you will finance it.

ETA: look I know you are a smart guy but I think you are missing something here that I think is irresponsible to omit. I dont mean to come across as argumentative and intentionally missing your point.


What I'm saying is that the fact that an asset depreciates or appreciates is of marginal importance to the decision to finance or not, assuming you could pay cash from jump street.

That assumption is key to my argument. If you don't have the ability to pay cash, that's a different conversation altogether.
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