Wednesday, November 30, 2011

Liquidity: The EuroCrat's New Suit

THE METAPHOR

Suits are on sale Wednesday.  I get paid Friday.

I can buy the suit on Wednesday using my credit card and pay interest on the charge.

I can buy the suit on Friday and pay the higher price.

Liquidity:

I saved money from my last paycheck to buy the suit.

I buy the suit for the lower price.
I pay no interest.
I earn interest on the money I saved from my last paycheck to buy the suit.

As Eloi Papillon, a character in the novel St. Lawrence Blues (Un Joualonais sa Joualonie) by the gifted French Canadian author Marie-Claire Blais, said, "Credit is the poor man's illusion of wealth" (C'est le pauvre homme de crédit l'illusion de la richesse.)

Bon chance,


Slim


slimfairview@yahoo.com

Copyright (c) 2011 Slim Fairview

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