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Author Topic: speaking of 'wealth held unused'  (Read 480 times)
musclehead
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Posts: 7245


inverness fl


« on: June 05, 2011, 07:08:03 PM »

I heard a guy call into a talk show yesterday, the owner of a 300 million dollar construction company, his reserve is being held back by inability to receive credit. he said that of the loans he has outstanding the OTC (or OCT's I forgot the acronym) is reassessing his loans and devaluing the property he is building. they constantly say this property has lost 1,000,000 dollars in value and you have to make up the difference. he does this to stay afloat and can continue because he has a large reserve of capital, BUT this is the capital he should be investing in new projects. he said he has mothballed 5 or 6 projects over the last two years, and would start at least 2 projects IF he could get credit. he has ran this company for 37 years and NEVER been late on a loan payment.

of course the oversight commitee might not know this companies track record. there seems to be a problem in letting businesses take risks again, even very good companies.

of course all this is subject to the BS detector squad, I just tried to accurately report what the caller was relating......
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