Friday, November 26, 2010
For my money, it remains the case that "Fidelity Fiduciary Bank" from Mary Poppins remains the most accessible presentation of the arguments for and against merchant banking. It is all right there, isn't it? Simply brilliant.
Yes, I've posted it before and probably will again -- I think of "Fidelity Fiduciary Bank" when I read stories like this (insufficient investing of tuppence) or like this (as long as the banks of Germany stand, Germany stands). But, when all is said and done I love the enthusiasm of the mocked and derided bankers for building things -- railroads in Africa, dams across the Nile, and plantations of ripening tea.
Y'ask me, we need more of that kind of enthusiasm. A lot more.
Here's the problem: these old farts failed to make clear the nature of interest to their potential investor.
They're saying, GIVE me your tuppence and boring stuff will happen in far away places you've never seen.
What they should say is, "I will pay you to let me borrow your money. Lend me enough for long enough, and eventually, I'll be paying you enough tuppence every day to feed every pigeon in London. Wait long enough, and you can feed every bird woman in London, as well."
They're failing to make clear their role as debtors, and to frame the negotiation in terms understandable and desirable to their potential investor.
Proof that Powerpoint is not required for presentation fail.
No, no, no. It is far more important to use the tuppence to fund an eco-sentimentalist encouraging the increase of disease-carrying nuisance wildlife.
"While stand the eccentric purveyors of useless goods with spurious moral attributes, England stands."
DJMoore - If any bank dared, it would be a great commercial to have the bird woman drawing out the accumulated interest on the capital of many tuppence deposited over the years, using it to take a world tour visiting dams, railroads, and plantations.
And kudos to Tigerhawk, for creating the platform wherein DJM and AVI carry for the theme he sagaciouly set.
Recall that "merchant banking" is the right model - one's own capital invested alongside others; proper balance between risk and return; long term greedy perspective; and not a hint of government subsidy.