AM> I don't know much about negative gearing to comment.

PE> Basically you borrow money from the bank, and use it to invest in
PE> shares and property.  Bond et al never actually spent their own money
PE> (they didn't actually have any).

AM> I thought it was letting a property at a loss and claiming the loss
AM> as a tax deduction?

Yeah, Paul always gets this one wrong. What he is talking about is just
gearing, not negative gearing.

Negative gearing is essentially making a loss in one area after the
costs of that operation are deducted, and claiming that tax loss against
another area where you are making a taxable income. As you say,
typically used by say a doctor who makes a loss after tax on rental
property to lay off against the tax payable on his butchering operation.

PE> I get sick of hearing of people getting rich by buying houses/shares
PE> as though it's so easy, you're a fool not to get into debt, and
PE> everyone rushing around talking about shares as if they actually know
PE> anything about it.

AM> I'm sure you've heard the 'saying' that rich people make their money
AM> by using other peoples money.  i.e. borrowing.  And borrowing is
AM> about the only way to convince a bank that you have a history of
AM> reliable repayment for them to lend you a lot more money in the future.

Thats mostly a myth based on the way the US operates for normal non
business borrowing. For example its perfectly feasible to borrow money
to buy a house to live in if you have a good secure job which pays well
above the minimum required to pay off the loan, even if you have never
borrowed anything from banks before. In the current market they will
positively fall over themselves to lend you the money. They wont need
too much encouragement to slobber all over your shoes too.

AM> Why would you of all people want that?

PE> High wages attract people who are only interested in a buck.  I don't
PE> like the quality of these people.  Especially I don't like the
PE> attitude of the bulk of people who are only interested in the current
PE> job so they can learn something new for their next job, neglecting to
PE> actually do anything constructive on their current job.  Anyway, with
PE> so many computer people unemployed, they should be able to drag wages
PE> down to about the same level as a bank teller.  I know I would still
PE> be in the game if that were the case, but many wouldn't be.

AM> At the cost of a probable almost halving of your own current wage?

PE> Quality of people around me.  People who don't think I'm crazy for
PE> spending as many hours on the computer at home as I do at work!

AM> Who the fuck cares anyway?  Most of us here are probably like that,
AM> even if the people you work with aren't.

I think there are a lot of people who would take a substantial wage cut
to work in a place which had somehow managed to keep the dickheads and
fools out. I know I would.

AM> There's a guy at work who hardly reads an industry journal or
AM> magazine, to keep up with the industry.  I get frustrated with those
AM> kinds of people too, but that's just what some people are like, and
AM> they seem to muddle through life none the less...

Yeah but Paul is saying that it would nice if you could piss them off
and not have them fucking up the operation. I agree with him. Its even
worse with the no hopers who not only are hopeless but who bugger up the
whole operation with their stupid insane approaches to stuff. Can ruin
an operation very effectively if they get to senior level and be able to
make changes which impact on the organisation. Thats what
comprehensively roots many public service operations as places to work.
Much of small business too, nothing worse than a buffoon who is so
stupid that he doesnt even realise hes stupid at the top.

PE> What on earth are you talking about, Anthony.  I'm trying to screw as
PE> much productivity out of people as possible, and damn anyone who gets
PE> in the way.

AM> Trouble is, you'd need some Hitler tactics to implement it!

Dunno, the yankee approach does work to some extent, stuff up once to
often and you are out the door. Corse it can make some people operate
super cautiously and never take any risks too. They actually sack those
too in some circumstance.

--- Maximus/2 2.01wb