Interesting stuff that I found on YouTube yesterday.
It says that the European Central Bank ECB) will lend money
to the International Monetary Fund
so that they can purchase sovereign debt and buy Euro-bonds.
It is sort of like I am lending money to you, so that I can borrow money from you.
The trick is I am lending to you at say 0.5% while borrowing from you at 1%, so effectively only paying you 0.5% of the borrowed amount for the effort,
while showing everyone that the Euro-bonds are all sold out.
It is sort of like I am lending money to you, so that I can borrow money from you.
The trick is I am lending to you at say 0.5% while borrowing from you at 1%, so effectively only paying you 0.5% of the borrowed amount for the effort,
while showing everyone that the Euro-bonds are all sold out.
Another real life game theory application - who are the real winners?
