/biz/ - Business & Finance

[Anonymous No.24801957]

They cant keep propping up the housing and stock market forever.... right?

[Anonymous No.24802081]

>>24801957
>he doesn't know

[Anonymous No.24802156]

>>24802081
w- what don't I know

[Anonymous No.24802178]

>>24801957
Propped up... in price against the dollar? The thing they can print an infinite amount of?
I'm sure they like their chances.

[Anonymous No.24802236]

>>24801957
They can and always will as we will once we are boomers anon
Also just buy land instead and plan building a house when you can

[Anonymous No.24802282]

>>24802156

[Anonymous No.24802584]

ok i explain it to you.
Money is created through debt. whenever a loan X is issued the total amount of money increases by X + interest. if the loan is paid back the total amount is reduced by x but the interest stays at the issuer.

so now what is happening. after 20 years of QE and artificially low interest rates the total amount didnt increase and wont increase by a lot even thou a lot of money has been printed. now to fill the gap someone has to loan money with the same amount. but since this loaned money doesnt create more money an even bigger loan has to be issued to fill the gap later.

we are now at the point when there is just not enough money in circulation to pay off debt even with low interest.

bailing out everyone is risky and might create resistance by people who dont get bailed out or were just reasonable.

so whats going to happen. we will see another deflationary shock just like in march but this time banks, companies and people are getting bailed out causing inflation not even imaginable by now.

TLTR. stay in cash, then buy the dip. preferably the gold and bitcoin dip

[Anonymous No.24802646]

>>24802584
I was with you until you said there will be a deflationary shock and offered no evidence

who's to say markets don't just keep getting inflated forever?

[Anonymous No.24802666]

>>24801957
Here's your living pod!

[Anonymous No.24802687]

>>24801957
Unlike other stuff like shitcoins, land is actually a really limited resource.

[Anonymous No.24802688]

>>24802646
if you cant pay debt you usually default on them, thats deflationary

[Anonymous No.24802869]

>>24801957
in sc2 the protoss are able to rush with oracles, thats refered as the oracle problem similiar to the zergling problem

[Anonymous No.24803214]

They can and they'll do it

[Anonymous No.24803262]

>>24802687
That can be taken away from you whenever the government feels like, or tax it to death otherwise.

[Anonymous No.24803289]

>>24801957
they own the printers retard. they can print forever

[Anonymous No.24803354]

>>24803289
what if we owned the printers

[CLF Chad No.24803369]

Yes.

[Anonymous No.24803999]

>>24801957
the stock market will keep bleeding up but housing is fucked going forward, the boomers and gen x trust fundies will get the hand

[Anonymous No.24804141]

>>24803999
Housing market is booming right now retard, has been for decades on. Now suddenly people have to stay home all day and there’s no end of it in sight. Who wants to wfh in a cuckbox all day? Comfy suburbian houses not too far from cities are mooning as usual.

[Anonymous No.24804187]

>>24802156
tech singularity is coming bro, fucking everything is gonna moon over the next ten years

[Anonymous No.24804298]

>>24802584
> When you misunderstand the chapter on money supply from a 2000 level Econ course and then try to explain it in broken English

[Anonymous No.24804540]

>>24803354
But you do not, so deal with it.

[Anonymous No.24804558]

>>24804298
>not doing it any better but complain
cunt

[Anonymous No.24805593]

>>24802584
Brainlet take, let me introduce you to what's really actually going on, macroeconomically speaking:
The Federal Reserve cartelized US banks, the system they run under is called fractional reserve banking which is not new but it basically means that the private banks can mint money by handing out debt/credit, then running to the Fed and telling them, they are now good for 10x the amount of debt. The Fed then prints 10x more money, gives it to the Private bank and tells them to store 10% of it as cash.
What happened with QE, ever since 2008, is that the Fed frontloaded this process, essentially buying up assets, short-circuiting the need for banks to stimulate economical growth and injecting liquidity directly into the economy.
That's why the FED also had to buy top tier collateral, like AAA rated bonds (private and government) because these collaterals served as the Reserve which traditionally would be multiplied by the factor of ten.
To then get out of that QE spiral the FED has to lower interest so that banks and companies will push our their capital into the economy, handing out loans, investing and pushing the liquidity back into the FED essentially.
Now listen up. This is where it get's bumpy:
The FED has signalled 0% interest rates up until at least 2023 and it has slowed down it's asset buying in the last 2 months considerably.
The question is can all this money ever make it back into the real economy or will it just inflate real estate, stock markets and other assets? I think it's safe to assume that it will never make it back into the real economy and that it only inflates assets and other stores of value. I think the rich will see their monetary power deflate and the poor will hurt terribly. This is why Bitcoin is so promising all of a sudden, when it was not before 2020. It's a way out of this system of extreme devaluation.
Gold is just another asset that will lose value.
Hope this helps.

[Anonymous No.24805676]

>>24802666
Add a few more windows and scale it up a notch and it looks way better than your average burger shack made out of plywood.

[Anonymous No.24805855]

>>24801957
They're the only things affected by inflation now. For most of the things you consume it's easy to increase production so supply is basically limited to maintain a price that's profitable. More buyers don't push up prices, they can even decrease prices through economics of scale.