Now THAT's A Superstore

An exercise in imperfect capital markets. A classic article.

In a system with perfect capital markets, you would be able to borrow against a highly certain future return. A slight discount for risk, perhaps, but if we are talking about a term of a week or so that should be no problem.

Well, this lady decided that she could not borrow against the future earnings to be gained from selling the meth she was going to make. She had a cash flow problem, lack of $$ to buy the meth makin's.

But this woman was an American. From Oklahoma. No barriers like imperfect capital markets were going to hold HER back.

(Gotta like how the news reporter starts out by saying she is speechless, and then jabbers for several minutes).

Point is that our lady went to Wal-Mart, stole the stuff she needed to make the meth, and started cooking it up right there in the store. Yes, she did. Really. You can read about it.

Clearly an example of market failure. P-Kroog will likely want an investigation, a commission, and a new federal agency to ensure that the poor have better access to capital markets. To be fair, the bed-wetters may have a point: THIS loan likely would have been paid back, unlike the crap loans Barney Frank and Mel Watt forced the banking system to make on housing.