/biz/ - Business & Finance

>>55102494
Correct, it's the tranny cult of Aphrodite/Inanna

>>55102501
>>55102540
pic related

>>23176462
Negative interest rates would effectively just buy more time to the economy that's already running on fumes. Negative interest rates would give central banks the chance to artificially lower interest rates when they already hit 0%, meaning the debt bubble would continue inflating as long as there are people ready to buy aftermarket bonds, and sell them at a profit when interest rates go even more negative. This will go down the same way real estate does: when people aren't willing to pay an exorbitant amount for a bond because they're afraid that a "greater fool" won't then buy it from them.

The debt bubble itself is inescapable because GDP is increasing slower than debt, meaning that the US is essentially paying its debt with more debt. As long as GDP increases slower than debt, the debt cannot be paid for without more debt. The equity market suffers from this and needs stimulus to keep going up so the Fed prints out more money, buys government bonds and that way increases the debt burden while the government injects stimulus with its new money, hot from the presses.

There are effectively negative yields everywhere around the world right now, even if only Japan and Europe have negative interest rates. This is because the yield of 10-year bonds is smaller than the inflation of a currency. This is called "Return Free Risk" and it applies to the U.S. at least, and looking at Canada's yields and inflation rate, it seems it applies to Canada as well. George Gammon made a great video about this, I urge you to watch it:
https://www.youtube.com/watch?v=RViGGmxOk9A&ab_channel=GeorgeGammon

>>23159101
Thank you anon, I started working overtime during weekends and sometimes after work for a couple of hours. I try to keep my bank account cash flow positive even while investing. Still figuring out the percentages but I think 20% to investments from each paycheck is sufficient at the moment
>>23159091
>It is very, VERY rare to get good financial advice from family. Even people with good jobs are financially illiterate and too afraid to learn themselves.
They're not illiterate or even bad at managing economy, they just don't know about investing too much. They know that there are risks involved and they're afraid that I'll burn my money away which is understandable of course. They suffered and got through the 1990's depression here in Finland and are living in a big house in a beautiful, small suburban area surrounded by forestry and they go on vacations every year. They've essentially made it with classic hard work, and are unfamiliar with investing, other than real estate (they rent out a few apartments while paying for the mortgages). I asked them what they would do if real estate markets crashed and they just told me that they'll just keep getting payments from the tenants (which my parents also choose carefully).

Sell me on Rich Dad Poor Dad? I've heard about the book mentioned off-hand a few times before. Also cool Asahi bars
>>23159362
I guess it's just such a far-off idea to them. People tend to think about what's in front of them after all. I'm worried they won't be getting decent retirement allowances too and that isn't even because of the economic state of things, just because of the population structure. There are so many things they should start doing to protect their economy but they seem to think their real estate holdings and pension allowances will suffice. I sincerely hope so too

>>22854777
>777
Well...

So, the central banks caused a massive Debt Leverage Bubble that's now about to pop. Not to mention the great productivity recession the central banks caused in 2008-2012 that lasted the whole 2010s.

Remember, the economic crisis is not because of coronavirus and lockdowns. They are rather the final blow to the debt bubble that's been about to pop for a while. The massive easening the central banks have done by buying bonds caused the government interest rates to crash, causing private banks to find profit from risky bonds whose rates crashed also, causing private banks to leverage the debt to beyond imagination.

First, there will be a massive unemployment wave. People are getting laid off en masse.

Second, the central banks strengthen their easening. But no amount of easening will increase consumption nor especially productivity. At best this will keep factories producing goods to fill the warehouses and stock them up, just like oil in March and April. This is already happening in China in a serious way: People's Bank of China is funding factories in China to keep production up only to store all the goods in warehouses. What will happen when the warehouses get filled up?

Third comes the bankrupt wave of the risky companies. Their debts will default which will cause a domino effect in the banking sector.

And the banking sector crisis, which will begin in Italy, will lead to serious consequences. The medium companies lose their funding causing lots of medium companies bankrupt. The central banks try their best to keep the banks afloat but in the end, the bubble will crash.

This will lead to the crash in tax money and debt money, making governments base their funding more and more on central bank easening.

Post your face when you think of the near future of the global economy.