Truck and Barter

Random Stuff

You never know what you'll find going through the referrals:

How does regulation affect the pron industry? Check out Agoraphilia to discover the possibilities(thanks to Mahalanobis).

Also from Mahalanobis, is an entry talking about how Austrians have Yen based loans and mortgages. I find this fantastic and, hence, sent an email for clarification. It seems counter-intuitive for Austrians to get Yen based loans when they have the Euro.

You should check the whole blog, especially since he has similar interests to Ian's.

The Calico Cat mentions Truck&Barter as a great blog while lamenting the Jessica Cutler controversy. Michael doesn't mention this blog's attempt to appeal to the same crowd. What is interesting is this post on the right's favorite slot jockey. From what people tell me, hiring a dominatrix isn't necessairly about sex, so would there be a real controversy?

Edit: I changed the credit from Kevin to Ian for the post concerning, well you figure it out.

Michael responded to the email I sent concerning the Yen loans:

> Am I reading your post right when you say that Austrians have
> Yen based loans and mortgages? If this is correct, why, exactly,
> aren't they in Euros? It seems silly for all but sophisticated
> players to engage in such transactions.

First of all, here is some data: 300,000 Austrians (Population: 8,200,000)
currently hold a foreign-currency loan. Quite interesting: According to
some newspaper reports, the general public had been informed (via TV,
Magazines, ...) about the volatility of the yen, and, as a result,
many people swapped to Swiss francs.

I found an article were Hans Abele (a professor of mine) said (freely
translated) that only due to the advent of foreign currency credits
(market liberalisation) a justifiable interest rate (he uses the term
"marktgerecht", literally "market-fair", I guess he thinks of an interest
rate that would be attained if markets worked efficiently)
was established in Austria. He says that there have been untenable
interest rate spreads.

Nevertheless, I do think that people are not informed adequately about
the currency risk AND that banks prefer giving foreign-currency
loans to home-currency loans due to the higher commission they can
reap (many transactions, higher account maintainence charge and what not).

Only recently a friend of my mother told me that her daughter has
aquired a very expansive house. I asked her how she thinks that her
daughter will ever be able to pay back that money and she replied:
"No problem, she has a yen-denominated credit, she almost doesn't
pay any interest". What more shall I say ;-D.

Posted at June 5, 2004 08:55 AM

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