Quote:
Originally Posted by Republicaninmass
Earning interest? Cant you buy pwcc bonds as well?
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Well they are loans, aren't they? And I would think they would have something in writing and not just be handing money over to people.
Put it this way. Even if they didn't actually list interest in their loan agreements with customers/consigners, the IRS could still impute interest using the AFR for the month the loan is made, and then based on how long the loan is for.
And don't go giving them ideas about bonds, or think of that as a big joke. If they're making loans for some of the large amounts people were speculating they were handing out, unless they were sitting on a huge pile of cash to make those loans, I'm guessing they're either working with a bank and have some kind of credit line or facility in place, and/or possibly have others investing in or loaning money to them (not too far fetched from your bond idea). In fact, the idea of others loaning or investing money with them actually makes more sense than them funding everything with a credit line/facility from some bank. I have no idea how well off the owners are to be able to pledge assets to be able to collateralize a credit line with a bank. Their business itself probably doesn't really have any major assets beyond possibly land and a building(s) they may own. They aren't going to be heavy with equipment, and I doubt they have any significant inventory as pretty much everything they sell or have in the vault belongs to their customers and consigners, not them. Now they will show the loans owed to them as assets, but no bank can rely on third party loans receivable like that alone as sufficient to collateralize loans then made to PWCC. Especially when the underlying assets for everything ends up being sportscards. That is not the kind of asset bankers will likely know much about, and I would definitely feel it is not the kind of assets they'd want to end up owning if the worst case scenario ever happened. So I really don't know what PWCC is doing, but would be surprised if they don't have outstanding bonds/loans held by somebody, to allow them to operate.