Diary of a Financier

‘The ROI is better in my business…’

In Capital Markets on Wed 28 Sep 2011 at 18:53

‘The ROI is better in my business than I could ever expect from this market.’

I’m starting to get that line more and more from prospective clients.

‘If I have the choice to allocate capital, my business returns x%.  There’s not a stock, bond or commodity out there that can get me that return with that reliability.’

Granted, I’m reaching a small [not so random] sample of businessmen.  Ignoring the obvious fallibility of those statements, does this not describe the ecosystem Mr. Bernanke’s Fed has targeted? Reduce the rate-of-return on safer securities to coax capital toward seeking riskier assets.  At least someone, somewhere in the micro-economy is playing prisoner’s dilemma with the macro-economy and choosing to invest in his business.

Just an observation.

–Romeo

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