Sabitlenmiş Tweet
1/ American manufacturers pay 3x more to finance equipment than their global competitors. It has nothing to do with pricing or tariffs, it's a regulatory accident from 2008 that no one has bothered to fix until now:
English
Denver Rayburn
426 posts
Denver Rayburn
@DenverRayburn
† | Building fully automated textile manufacturing at Framework. American (re)Industrialist. Previously Interweave, Norwest, Lazard.
Los Angeles, CA Katılım Şubat 2010
630 Takip Edilen2.9K Takipçiler
Denver Rayburn retweetledi
JUST IN: New York City reportedly now spending more per homeless person than the median income of the city.
English
@chrishume_ @elonmusk We’re making progress!! Will update soon.
English
@DenverRayburn Wish @elonmusk still had the pull in gov to get this done
English
1/ American manufacturers pay 3x more to finance equipment than their global competitors. It has nothing to do with pricing or tariffs, it's a regulatory accident from 2008 that no one has bothered to fix until now:
English
English
English
The “a” in poasting stands for alpha.
Denver Rayburn@DenverRayburn
It’s remarkable where just posting things can get you
English
Version control problem - it’s $2,013 over 8 years rather than 12.
EquipmentWatch and ELFA show industrial machinery consistently ranking among the lowest-loss collateral classes in commercial lending meaning banks are successfully recovering value on these assets when they do repossess. the 100% regulatory risk weight doesn't reflect the actual loss experience.
English
The problem might be simpler than Basel III: specialized equipment is just hard to repossess and resell. A CNC machine bolted to a factory floor in rural Ohio isn’t like taking back a car. Banks know this. If that’s the real reason they avoid it, a government guarantee doesn’t fix the market. it just means taxpayers eat the loss instead.
Also $2,013 × 144 months is not $193,000.
English
@nisten Lmao open excel and tell me which has a bigger impact: 15% purchase price difference or 2 vs 10 year amortization.
English
@DenverRayburn It definitely has something to do with tariffs too but you're too pussy to be call things as they are
English
@masch_services Would love to hear what you all have seen in the field
English
It’s a good question - typically large banks have a lower cost of capital and therefore lower rates / longer durations. Leasing vs owning usually comes down to lower monthly payments being preferred by the lessee because they’re only paying for the depreciation + interest of an asset with some residual value
English
Very interesting piece. One question: instead of leasing, why would the manufacturer get a secured loan from a BDC and use that to *purchase* the equipment?...in that case, I believe that the residual-value-vs-time calculation would be up to the BDC's commercial judgment, not to regulators.
English
@friedl_jon43446 I can send you 10 term sheets for equipment leases than are not 5-6 years
English
@DenverRayburn This is not accurate. As someone who has financed millions in machinery, typical terms are 5-6 years.
English
A delegation from Gundo went to Japan to educate Steve Aoki on the “Gundo bonfire”
@khawajasn @DenverRayburn @TashiNakanishi @steveaoki
English
@broblas Exactly. They’d love to finance this equipment but their hands are effectively tied.
English
@DenverRayburn So is it that the regulation makes it a bad business for banks or they literally cant offer the same terms?
English
@MatthewChang @DenverRayburn Lease to own and a better marketplace to help underwriters have a backstop
English
@rexsalisbury Well it doesn’t seem to be working does it. Equip America would make money for treasury.
English
@DenverRayburn you're forgetting we spent $300+ billion subsidizing the purchase of heavy machinery in the OBBB.
we don't need more subsidies through our various regulatory apparatus whether that's the tax code or banking regs.
English
The “fix everything easily” switch for American manufacturing
Denver Rayburn@DenverRayburn
1/ American manufacturers pay 3x more to finance equipment than their global competitors. It has nothing to do with pricing or tariffs, it's a regulatory accident from 2008 that no one has bothered to fix until now:
English
@DenverRayburn WELL SAIDDDD!!! have you talked with Erebor about this?
English
@Manufacture_IT Yes it’s 100% about cash flow and matching payments for machinery to the machinery’s revenue generation
English
@DenverRayburn Isn’t this more about cash flow than “savings”?
English
@paulsutter We did this to ourselves... but we can also undo it!
English
Finally an explanation why equipment leases in the IS are so messed up
Denver Rayburn@DenverRayburn
1/ American manufacturers pay 3x more to finance equipment than their global competitors. It has nothing to do with pricing or tariffs, it's a regulatory accident from 2008 that no one has bothered to fix until now:
English