User Tag List

+ Reply to Thread
Results 1 to 9 of 9

Thread: Economics is Fun, Part 9: Joint Enterprise

  1. #1

    tPF Moderator
    Points: 563,030, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 99.9%
    Achievements:
    SocialRecommendation Second ClassYour first GroupOverdrive50000 Experience PointsTagger First ClassVeteran
    Awards:
    Activity Award
    Chris's Avatar tPF Moderator
    Karma
    229927
    Join Date
    Feb 2012
    Posts
    108,699
    Points
    563,030
    Level
    100
    Thanks Given
    9,516
    Thanked 26,092x in 19,739 Posts
    Mentioned
    1315 Post(s)
    Tagged
    1 Thread(s)
    Rep Power
    2412

    Economics is Fun, Part 9: Joint Enterprise



    Might get some argument on this one.

  2. #2
    Original Ranter
    Points: 83,174, Level: 70
    Level completed: 31%, Points required for next Level: 1,676
    Overall activity: 7.0%
    Achievements:
    Social1 year registeredTagger Second Class50000 Experience PointsYour first Group
    Conley's Avatar Senior Member
    Karma
    7401
    Join Date
    Jun 2011
    Posts
    22,473
    Points
    83,174
    Level
    70
    Thanks Given
    4,582
    Thanked 2,499x in 2,008 Posts
    Mentioned
    235 Post(s)
    Tagged
    1 Thread(s)
    Rep Power
    102
    Haha, Bush and entrepreneur...they're still bashing him over there?

    All of thee videos are thoroughly convincing that the free market is the best path to follow. The problem results when government intervenes on behalf of those who fund their campaigns.

  3. #3
    Original Ranter
    V.I.P
    Points: 822,091, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 99.8%
    Achievements:
    SocialCreated Album picturesOverdrive50000 Experience PointsVeteran
    Awards:
    Discussion Ender
    Peter1469's Avatar Senior Member
    Karma
    325535
    Join Date
    Jun 2011
    Location
    NOVA
    Posts
    117,169
    Points
    822,091
    Level
    100
    Thanks Given
    65,574
    Thanked 47,218x in 33,057 Posts
    Mentioned
    1944 Post(s)
    Tagged
    0 Thread(s)
    Rep Power
    3378
    Great video. I would like to see him expand on limited liability in the future.

  4. #4

    tPF Moderator
    Points: 563,030, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 99.9%
    Achievements:
    SocialRecommendation Second ClassYour first GroupOverdrive50000 Experience PointsTagger First ClassVeteran
    Awards:
    Activity Award
    Chris's Avatar tPF Moderator
    Karma
    229927
    Join Date
    Feb 2012
    Posts
    108,699
    Points
    563,030
    Level
    100
    Thanks Given
    9,516
    Thanked 26,092x in 19,739 Posts
    Mentioned
    1315 Post(s)
    Tagged
    1 Thread(s)
    Rep Power
    2412
    That's the part I think might be controversial. I'd earlier understood limited liability as no risk, or virtually none. But the limit is your investment, no risk losing more. I can see how that encourages investment, but also encourages possibly more risk that without it.

  5. #5
    Original Ranter
    V.I.P
    Points: 822,091, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 99.8%
    Achievements:
    SocialCreated Album picturesOverdrive50000 Experience PointsVeteran
    Awards:
    Discussion Ender
    Peter1469's Avatar Senior Member
    Karma
    325535
    Join Date
    Jun 2011
    Location
    NOVA
    Posts
    117,169
    Points
    822,091
    Level
    100
    Thanks Given
    65,574
    Thanked 47,218x in 33,057 Posts
    Mentioned
    1944 Post(s)
    Tagged
    0 Thread(s)
    Rep Power
    3378
    Quote Originally Posted by Chris View Post
    That's the part I think might be controversial. I'd earlier understood limited liability as no risk, or virtually none. But the limit is your investment, no risk losing more. I can see how that encourages investment, but also encourages possibly more risk that without it.
    That is referring to the stock owners. If I buy 100 shares in XYZ corp, and it goes out of business and even commits fraud, the max that I can lose is my 100 shares (or whatever it grew to over the years.)

    Then there is a separate issue of the corporate board. They are the ones driving the train of the corporation, and they have a different sort of limited liability. Often many are guaranteed millions even if they fail.

  6. #6
    Original Ranter
    Points: 83,174, Level: 70
    Level completed: 31%, Points required for next Level: 1,676
    Overall activity: 7.0%
    Achievements:
    Social1 year registeredTagger Second Class50000 Experience PointsYour first Group
    Conley's Avatar Senior Member
    Karma
    7401
    Join Date
    Jun 2011
    Posts
    22,473
    Points
    83,174
    Level
    70
    Thanks Given
    4,582
    Thanked 2,499x in 2,008 Posts
    Mentioned
    235 Post(s)
    Tagged
    1 Thread(s)
    Rep Power
    102
    I think it encourages risk when you are using others investments, no doubt. If you are risking your own money (but not all of your assets) then you likely take less of a risk.

  7. #7
    Original Ranter
    V.I.P
    Points: 822,091, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 99.8%
    Achievements:
    SocialCreated Album picturesOverdrive50000 Experience PointsVeteran
    Awards:
    Discussion Ender
    Peter1469's Avatar Senior Member
    Karma
    325535
    Join Date
    Jun 2011
    Location
    NOVA
    Posts
    117,169
    Points
    822,091
    Level
    100
    Thanks Given
    65,574
    Thanked 47,218x in 33,057 Posts
    Mentioned
    1944 Post(s)
    Tagged
    0 Thread(s)
    Rep Power
    3378
    I like the limited liability idea for stock holders for the reasons stated in the video. It is that other type of limited liability for the leadership that takes large corporations out of the free market arena.

  8. #8
    Original Ranter
    Points: 83,174, Level: 70
    Level completed: 31%, Points required for next Level: 1,676
    Overall activity: 7.0%
    Achievements:
    Social1 year registeredTagger Second Class50000 Experience PointsYour first Group
    Conley's Avatar Senior Member
    Karma
    7401
    Join Date
    Jun 2011
    Posts
    22,473
    Points
    83,174
    Level
    70
    Thanks Given
    4,582
    Thanked 2,499x in 2,008 Posts
    Mentioned
    235 Post(s)
    Tagged
    1 Thread(s)
    Rep Power
    102
    Quote Originally Posted by Peter1469 View Post
    That is referring to the stock owners. If I buy 100 shares in XYZ corp, and it goes out of business and even commits fraud, the max that I can lose is my 100 shares (or whatever it grew to over the years.)

    Then there is a separate issue of the corporate board. They are the ones driving the train of the corporation, and they have a different sort of limited liability. Often many are guaranteed millions even if they fail.
    Exactly. Whatever assets the company has are sold off and the creditors are paid off in a certain order. Often there is no money left for the common shareholders at the end of the process.

  9. #9
    Original Ranter
    V.I.P
    Points: 822,091, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 99.8%
    Achievements:
    SocialCreated Album picturesOverdrive50000 Experience PointsVeteran
    Awards:
    Discussion Ender
    Peter1469's Avatar Senior Member
    Karma
    325535
    Join Date
    Jun 2011
    Location
    NOVA
    Posts
    117,169
    Points
    822,091
    Level
    100
    Thanks Given
    65,574
    Thanked 47,218x in 33,057 Posts
    Mentioned
    1944 Post(s)
    Tagged
    0 Thread(s)
    Rep Power
    3378
    Quote Originally Posted by Conley View Post
    Exactly. Whatever assets the company has are sold off and the creditors are paid off in a certain order. Often there is no money left for the common shareholders at the end of the process.
    I believe that shareholders have a secured claim, so they are above unsecured claims. I could be wrong. I know that bond holders have a secured claim- unless you are talking about GM!.....

+ Reply to Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts


Critical Acclaim
Single Sign On provided by vBSSO