It depends on the transaction costs. The $700B is covering an actual $330B in defaults; If those defaults are written down by 1/2--a standard measure, then the $700B is actually covering $165B in real assets; the "other" $535B "leftover" is covering the transaction costs--salaries for CEOs, fees, and etc. So the question is, what is the church's transaction costs?
It depends on the transaction costs. The $700B is covering an actual $330B in defaults; If those defaults are written down by 1/2--a standard measure, then the $700B is actually covering $165B in real assets; the "other" $535B "leftover" is covering the transaction costs--salaries for CEOs, fees, and etc. So the question is, what is the church's transaction costs?
ReplyDeleteLet me answer with a question often asked by ministers to parishners asking a similar question about their tithes:
ReplyDelete"Would you rather be blessed on your gross income or your net income?"
Ho ho, ha ha, ho ho...
ReplyDelete