Originally Posted by Adder (Post 501566)

Uh huh. We (and Japan and Western Europe) are already reproducing at appropriately low rates. A small uptick because of "got nothing else to do" boning doesn't matter much, as long as rising into middle income (or higher) status has the same effect on China, the rest of Asia and wherever low skill manufacturing goes after that.

Originally Posted by Hank Chinaski (Post 501571)

China just ended the 1 child rule. there is a massive baby boom coming as everyone under 45 tries to get that second kid in.

Originally Posted by taxwonk (Post 501570)

As long a they can find them and afford them, no problem. It's when they start getting hungry and can't afford or find those pork rinds that there will be noise.

Originally Posted by Pretty Little Flower (Post 501574)

Originally Posted by taxwonk (Post 501567)

Perhaps an example.

X wants to build a $2.5 billion hydroelectric dam. X will put up $50 million equity and borrow the remaining $2.45 billion. Under regulations, no more than 25% of the project may be in slices larger than $100 million, 25% may be up to $200 million, the balance must be in smaller tranches. The entire loan must be syndicated in a reverse dutch auction with no limits on dollar amounts bid on for any tranche. The terms for each lender in a tranche must be identical. If a lender bids for $200 million of the syndication at 6.25%, on whatever terms, and a lender bids on $5 million at 6.25%, the agent must allocate to those two if they are the low bids, on exactly the same terms proportionally. If one gets a .25% fee, the other gets a .25% fee. No other lender can be allocated any portion of the loan at any higher rate unless all bidders at a lower rate are included.

Overall costs to the borrower may be higher, but rates may be lower because a smaller lender needs a smaller return. It's a bigger headache for the agent, because it has to deal with more lenders. It can build that into its management fee.

Any lender with adequate funds can bid on any deal by registering with any agent to receive a bid package on all syndications. Amendments, extensions, etc. can be dealt with by allowing for voting at given dollar levels lent, regardless of rate tranche.

That doesn't cover everything, but it's a start.

Originally Posted by Adder (Post 501569)

Pretty sure he was implying that flying is expensive/unpleasant because there are too few players.

Originally Posted by Adder (Post 501573)

It's cute that you think people in China were really only having one child.

Originally Posted by ThurgreedMarshall (Post 501576)

This makes no sense to me. But, whatever. I'm just a lending lawyer.

Originally Posted by Hank Chinaski (Post 501578)

Have you been? There were exceptions, like if you were farmers and your first was a girl you could have a second. Also, if you were connected you could treat all laws as bullshit.

Originally Posted by Hank Chinaski (Post 501537)

One of the things that killed this board for me is the complete inability for anyone to recognize the possibility someone they support might have made a mistake.

Originally Posted by taxwonk (Post 501548)

Let me state the obvious. There are 10,000 of them for every one of you. Make them satisfied. Otherwise, fuck them? Fuck you.

Originally Posted by taxwonk (Post 501575)

Now that is what I call super heavy funk.

Originally Posted by ThurgreedMarshall (Post 501576)

Among many other things, this assumes you have enough banks to take a preset slice of the financing to reach your goal. And if one bank can do it at a certain interest rate, what makes you think they all can? Are you saying if you get 2 banks at $300 million at one interest rate, they both get the same terms, but if you run out of commitments at that rate, you then move to the next set of banks at the higher rate and allocate among them?

This makes no sense to me. But, whatever. I'm just a lending lawyer.

TM

Originally Posted by Sidd Finch (Post 501582)

This really is not so obvious. If it were, Bernie Sanders would have sewn up the nomination back in, well, last October. (Trump would have had to fight longer, only because his tiny fists would need time to break down the pedestals that the Baby Jesus build for Cruz.)

Originally Posted by Adder (Post 501573)

It's cute that you think people in China were really only having one child.