Re: Bonds
Posted: Tue Dec 25, 2012 6:26 pm
At the end of 50 years of playing, I have about 40 billions in my company,
Meanwhile, My company earned around 2 billions in annually profit
But I have 10% in inflation and loan interest rate at 10.5%.
My net income in that year was negative 2 billions, because
40 billion x 10% inflation (purchase value goes down by 10%) = -4 billion
-4 billion + 2 billion in annually profit = -2 billion
SO what is the purpose of continue playing?
My cash continue to go down, cash setting at the bank yield no saving interest rate?
I can not buy CDs or bonds, stock market is about to collapse and
I spend $25 billions already to purchase the entire city's real estate.
Where else I can invest? The remaining 3 other cities' real estate.
After that, then what?
Meanwhile, My company earned around 2 billions in annually profit
But I have 10% in inflation and loan interest rate at 10.5%.
My net income in that year was negative 2 billions, because
40 billion x 10% inflation (purchase value goes down by 10%) = -4 billion
-4 billion + 2 billion in annually profit = -2 billion
SO what is the purpose of continue playing?
My cash continue to go down, cash setting at the bank yield no saving interest rate?
I can not buy CDs or bonds, stock market is about to collapse and
I spend $25 billions already to purchase the entire city's real estate.
Where else I can invest? The remaining 3 other cities' real estate.
After that, then what?