/biz/ - Business & Finance

Probably not that many. I only understand it on a very basic level myself, if that.

>>18195757
They don't want anyone to realize they don't know what they're talking about.

>>18195757

that's the point. They don't want you to even try understanding - but honestly it's all the same thing. Buying and selling of debt.

One guy wanted to make money while doing nothing, so he loaned it to another guy, then hes like what if that guy doesn't pay me, so another guy says pay me for doing nothing and if he doesn't pay you I'll pay you. And he does this to a lot of people so even if a couple don't pay he doesn't lose a lot of money. So its risk free, free money. But what if they all stop paying at once? That's where another guy steps in and provides "insurance." All of a sudden you have a "financial industry" of a bunch of people wasting time figuring out how to make money doing nothing. The more complicated and obfuscated it is the more impressive and important it seems.

>>18195757

https://www.youtube.com/watch?v=jScS6jwCCX0

The only thing in your list that this video does not cover is the treasury yield curve. But that's quite easy to understand. It's a curve defined by the yields (y axis) for different maturities on the X axis (length of loan. 1 year, 5 year, etc).

When healthy, the curve is ascending (longer maturities have higher rates), at a decreasing rate. Like this: https://upload.wikimedia.org/wikipedia/commons/a/a7/Yield_curve_20180513.png

When it's "inverted" (i.e. there are longer maturities with lower yields) it may be interpreted as a sign of trouble.

>>18195851
Underrated post

>>18195757
To confuse and misdirect the gentiles of course

>>18195757
I'll make it really simple for you: the rich are stealing all the wealth from the poor. That's it. The middle class died because there's no industrial base and everything is getting mechanized.

>>18195757
>Federal funds rate
target rate that fed advises commerical and investment banks aim for
>Inter-bank overnight interest rates
the actual rate that banks use when making overnight loans (exactly what the sound like) to other banks, banks make overnight loans to eachother to fill reserve deficits (banks were required, but are no longer required, to keep a minimum of 10% of depositors cash on hand)
>Treasury yield curve
the various interest rates offered by government bonds, bonds being basically highly standardized discretely packaged loans, a healthy curve is upward sloping, but steeper for the shorter term bonds and more gradual for longer term bonds, and unhealthy curve is a flat or inverted one, where higher rates are given for shorter term bonds, long term bonds have lower yield when lots of entities are buying government bonds directly from the goverment, indicating that the buying parties anticipate long term gross underperformace of assets which traditionally give high returns in ponzi market conditions (stocks, ETFs, index funds, etc), that is, they would rather have their money in bonds than stocks and related products because stocks will have enormous negative returns while bonds will have small negative returns (because inflation rate is greater than bond yield)
>Repurchase operation
when a financial institution buys government securities like bonds (in the form of a short term loan) from another financial institution (often overnight but sometimes longer periods like days or weeks) to give them the necessary liquidity (cash) to meet financial obligations like interest, principal, and reserve requirements
>Quantitative Easing
federal reserve buys back us government bonds from financial institutions to inject liquidity (add cash) so they can either meet their financial obligations like paying interest and principal or for reallocating that cash into stuff like ETFs and stocks in order to further pump the ponzi
>Liquidity injection
adding cash

>>18195757
It's all fancy terms for fancy methods with all the same result:
Printing money out of thin air to give to the top 10%, and grow the wealth & income gap.

>>18196440
Thanks

>>18196676
no prob

>>18195851
Based
Economy is a fucking meme.