/biz/ - Business & Finance

>>1563369
>Are we setting ourselves up for a bubble burst?
yes, and central banking doesn't work

>>1563369
here, i will post some intro videos to your red pill experience

https://www.youtube.com/watch?v=iFDe5kUUyT0


https://www.youtube.com/watch?v=RrwbgdtbdXE


obviously it is a lot more complicated then how those videos explain it to be, but if you delve deeper, those videos are still right about the fundamentals


also, Peter Schiff is right

>>1563412
>peter schiff is right
pic related

>don't give loans to lots of people so that markets don't have liquidity all the time and watch them freeze and contract, causing everything in civilized society relying on trade to collapse into ruin
>Or let people learn that they can be retards because a central bank will give them all the money they need to pretend they're not relying on a closed loop of speculation to "create" wealth

Pick one. I'm just hoping central bankers can hold it together long enough that the material cost of living is negligible so that even if a market shits the bed, it's not going to cause society to crumble.

>>1563488
>>don't give loans to lots of people so that markets don't have liquidity all the time and watch them freeze and contract, causing everything in civilized society relying on trade to collapse into ruin
counter point to this argument is that the united states has actually been in existence without a central bank longer than it has. central banking has caused the bubbles that we know as 1929, 2001, and 2008. If you let a central authority set artificial interest rates while they also have the interest to bailout private banks in the future, things will not turn out well. Our nation experiences the fastest GDP growth from 1870 - 1913 when no central bank existed at all.

>>1563679
>starts talking from 1929 onward
>doesn't talk about the bank run of 1907

Anon why are you purposely leaving out the time small losses of a speculator in 1907 caused a six week stretch of bank runs and lead to a rescission, where a JP Morgan had to bail everyone out.

>>1563679
How do you think interest rates have been historically set for like 99.9% of the time markets have even existed? They were set by temples in antiquity on the basis of mathematical ease of calculation alone, then usury was largely forbidden by religions for a long time and then banking really got going again by working with kings and governments and dealing in public debts. Bankers and governments always go together. To think there existed "real" interest rates before the creation of the Federal Reserve but then they became "artificial" after the Federal Reserve and this explains every economic problem thereafter is naive and doesn't explain the 19th century bubbles and over-speculation on rail-ways [canals and inland waterways would have been much more economic invetments] and the like or the depression in the 1870s: https://en.wikipedia.org/wiki/Long_Depression
The rate of interest [even if the Fed could perfectly dictate it] is not nearly as important as you would like to believe to the real economy in comparison to profitability. Interest is just a claim on profit and the driver of real investments is actually profitability, not whatever the rate of interest is. If you have no real profitable opportunities you're going to get speculation on pure financial assets rather than real investments occurring. Whatever the interest rate is is irrelevant beyond the fact that if it's so high it may be diverting money away from real investments.

It's an illusion.

>>1563736
Because it would conflict with the narrative that the gold standard was the best thing to happen to America and that central banking is a Judenkomplott to control the world.

Never mind the fact that JP Morgan was more than happy to control a significant amount of the US economy anyways by providing credit and paper money, well before the establishment of the Federal Reserve. Or all the times they had to suspend convertibility of US dollars to gold anyways.

>>1563736
1907 was caused for the creation of the Fed


>>1565099
>gold standard was the best thing to happen to America and that central banking is a Judenkomplott to control the world.
this is 100% tru tho lol

>>1563909
Not sure how this debunks my argument of why central banking should not exist, but ok

>>1565099
>Never mind the fact that JP Morgan was more than happy to control a significant amount of the US economy anyways by providing credit and paper money, well before the establishment of the Federal Reserve. Or all the times they had to suspend convertibility of US dollars to gold anyways.
yes, there as no central banking, which means there was no way for JP Morgan to be bailed out by the government and they would have to suffer the consequences.

>>1563909
>If you have no real profitable opportunities you're going to get speculation on pure financial assets rather than real investments occurring.

I suppose that's the problem with the economy today.

>>1566119
>2016
>no real profitable opportunities

Yeah go check the current trading levels of Treasury securities, mutual funds, ETFs, EVERY kind of real estate, and the rate at which small businesses are opening and staying open then tell me there are no real profitable opportunities today.

I think what you meant to say was, "there is currently no easy money for lazy pricks to pick up off the ground."

>>1563369
>Is QE unsustainable?
Sustainable at this rate until one day everyone who's anyone decides the money's worthless.

This bubble's gonna be a slam dunk!
>>1563909
>Whatever the interest rate is is irrelevant beyond the fact that if it's so high it may be diverting money away from real investments.
Bank leverage makes them vulnerable, the notion that the central bank will always rescue them undermines my confidence in the dollar.