/biz/ - Business & Finance

So after reading this I have come to some, frankly, scary conclusions;

1. Class is a mathematically enshrined concept in society now;
This may seem obvious, but the fact you can fundamentally prove on paper that making number go bigger is all that matters in your perceived worth to society is honestly trash. When the paper talks about a household's "risk aversion" what they actually mean is that they are leveraging up their household, and instead of buying growing assets such as stock they are instead leveraging up to buy a job, essentially. They are risk averse because they use credit to purchase things such as FOOD and CARS to keep working, instead of "RISK ASSETS" such as stocks and bonds. Those of you benefiting from the mass corruption in this system will say "just buy stock", however those with a more keen eye will realize that essentially this squeezes ANY need for humans out of the system eventually, by default of it's being.

2. "Never selling" is the bankers OG meme, sorry linkies.
They literally never have to sell an asset, the defacto thing to do is now "de-risk" an asset, which is likely why banks perform so poorly compared to every other buisness out there in this enviroment. Derisking an asset means you don't sell that asset, you simply loan that assets risk to someone else and collect a fraction of its return. This is beneficial to your buisness as it means when you lend an asset out, you hold the debt claim on the asset. Sure you may make less money then just holding it, but if the borrower goes broke you simply take the asset back. This is beneficial to both the borrower and the lender, because the borrower can effectively leverage up their investments higher then they previously could by basically paying installments to own the asset, and the lender returns higher then negative yielding cash while also being able to leverage up themselves when they need to "sell" something, betting on the assurance the fee income will cover them.