Tuesday, 17 March 2009

Linkage

The housing bust, manufactured securities, and Martin guitars


“Monty” ties ’em all together :

I am a guitar player, and the “grail” of many acoustic guitarists is the pre-war Martin D45.  Some of these guitars have sold for upwards of $500,000.00.  Now, let’s say that I have one of these guitars, in excellent condition, and want to use it to plan for my retirement.  How can I treat it as a financial asset?

Well, let’s say that my friend Bob has been pestering me for years to buy it.  I don’t want to sell yet, but neither do I want to miss out on a potential sale should I want to sell.  So Bob and I draft an agreement...
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