/biz/ - Business & Finance

>>13811606
yeah they have heavily gated access to the moneyed classes and it's functionally infinite not literally infinite but my point still stands, understand the situation

>>12398242
oh no no no

>>12018479
pretty fucking pathetic it can even be that high when you consider this chart

because bitcoin is a good way to deal with pic related being the reality

the bubble wont pop until there is civil war in america. nominal prices are not reliable anymore though

>actual money
eeeeeeehhhhhh, for now

>>11773118
maybe

remember if you're holding cash or equities or bonds traded in cash you're tied to a system in which there is a global race to the bottom to print cheap money. the game has been rigged to avoid total collapse, albeit in a smart way to avoid short-medium term drastic consequences. but at some point, especially as unfunded liabilities come due the effects of this will be seen more and more in higher prices for everything important in dollar terms. the debt will have to be monetized at some point. and gold is a very hard to divide (for commerce) and hard to authenticate rock (tungsten problem) which also is very difficult to store and transport safely even with strong rule of law. there is a reason crypto was looked at by Wall St. in the first place. but even people who understand this stuff and work with it get blinded by greed sometimes and fall into patters of thought that are complacent. don't be complacent against this failed system. understand why you are buying in the first place and why it will only go up in dollar terms over the long run as long as it remains operational with the highest cost to attack. they can't undo pic related without ruining everything at this point, it can only go up.

housing crash was due to lowered standards in mortgage lending and rampant mortgage fraud as a result, as well as mismanagement of loan documentation. without the government stepping in and 5xing the monetary base for the next 10 years basically giving the banks a bunch of free money the entire entire global system would have come to a standstill and there likely would have been the breakdown of society as the vast majority of banks would have failed, although they could have taken that route and then literally printed dollars with the FDIC to make all depositors whole, but that would have been bad for the bankers so they just made a bunch of fake money. the next crisis won't be similar because lending standards have been kept strict for the most part. The crisis in play is a monetary crisis bigger than ever seen in history, it's uncertain how it will play out as far as I can tell, but it's the biggest reason I like bitcoin

>>11719218
I'm talking about the post-Bretton Woods era. Of course banking itself was invented long before the USA. What we have now is not what it used to be though. How many times has Basel III been delayed now? There are hardly rules anymore, world war III is happening and money is the weapon. We are in uncharted waters now.

nothing ever happens. shorts are just cheap fuel to keep the party going. the WG on FM aka the PPT will solve this.

>>11709969
is the federal governmen the source in this and it is consumer credit and student loans? what the fuck is this chart how can it look like this?

>>11703494
>private real estate
damn im tired and slow, I meant single family houses... not private real estate. multi family is one thing but traditionally single family houses have been an attainable goal but not with the way rates and incomes are moving and prices have moved. single family houses were not ever traditionally investment properties in any large capacity they were for people to buy, and they didn't usually make sense as investment properties. now there is so much money out there people are getting totally priced out.

>>11657257
>time the overall stock market
why would you even need to do that when the money is broken beyond repair and it's only a matter of time until reality catches up. congrats on your continued nominal gains, I'm sure fannie mae can have 3 trillion of assets on its balance sheet with -3 billion in equity forever with no consequences on any other areas of the economy.

based and redpilled

>>11495907
greed
high information asymmetry
diminishing rates of new market participants after public had access to markets for first time and was exhausted
a fall in the money supply putting downward pressure on nominal values
high debt to gdp ~300% combined with deflation due to a drop in the money supply, making loans ever more impossible to repay as they are priced nominally

could it happen again?

maybe my single favorite dynamic playing into the shitstorm of forces that caused the crash and great depression was the Federal Reserve purchasing $1 Billion + of government securities in the early 1930s in an attempt to save the market, which was 2.5x its holdings at that time. basically the Fed printed money to try to save the market, more money than ever before. But this actually caused the money supply to drop by 3 times as much because the public did not trust this move with so much debt already and began hoarding cash (there was no FDIC yet, that came a year later as a "temporary program" much like suspension of gold convertability which can cause similar "problems"), making bankers more averse to lending as they needed deposits to cover their loans (they couldn't immediately flip them to Fannie Mae and Freddie and whoever else because they were still banks, not just a transparent front for the central planners).

banking was initially pretty good. while being prone to localized states of corruption as any human institution is it was basically a decentralized mechanism to price the risky use of capital in human activities in pursuit of a profit for doing so in a positive way. nowadays it's just a big game of make believe, far far detached from anything approximating the informed and decentralized competitive pricing of risk. could it happen again? well, we went even bigger this time but I don't see why not. people being less informed about it than in the olden days is the only reason it hasn't yet

>The won was revalued in November 2009[11][12] for the first time in 50 years.[13][14] North Koreans were given seven days to exchange a maximum of ₩100,000 (worth approximately US$40 on the black market) in ₩1,000 notes for ₩10 notes, but after protests by some of the populace[citation needed], the limit was raised to ₩150,000 in cash and ₩300,000 in bank savings.[15] The official exchange rate at this time was around $740 but black market value of the ₩150,000 was estimated to be near $30.[16] The revaluation, seen as a move against private market activity, wiped out many North Koreans' savings.[15] The Times speculated that the move may have been an attempt by the North Korean government to control price inflation and destroy the fortunes of local black market money traders.[17] The announcement was made to foreign embassies but not in North Korean state media.[17][18] Information was later carried via a wire-based radio service only available within North Korea.[19]

Fucking amateurs. Pic related is what a truly skillful currency revaluation looks like. None of the peasants even realize it happened because ownership of real estate and financial assets is being cornered first before that will happen.

>>11378740
>blocks your path

inflation is real, the only hoax is the official inflation figure. anyone who has been an adult for more than 10 years and can look back at education, healthcare, and housing should understand this. consumer goods are the last place it usually trickles out to because that generally requires wage growth. however in the last 25 years especially there has been an epidemic of Ivy League MBAs in dark rooms figuring out how to slowly make the towels thinner without anyone noticing. this can be seen across most products and can be summed up as "everything is becoming shit" or "they don't make them like they used to". of course there are well made items but those experience inflation similar to healthcare education and housing if they don't become shit but that's ok because the rich can afford it. the first destination of pic related was financial assets which have experienced the most inflation, allowing the already wealthy to benefit from inflation. highly necessary things that are commonly financed such as housing, education, and healthcare that have inelastic demand and widely available cheap leverage experience inflation as the most reliable ways for the wealthy to extract rent from peoples' needs. consumer goods inflation requires income growth for the most part.

Everything is fine. The leading global economy isn't a political smoke and mirrors show built on legislatively quadrupling the monetary base to avoid a breakdown of world order in 2008. China's not ten times worse. Bitcoin has no value.