GON Economics lessons are a joke

Based upon the principals of Macro Economics I learned in college compared to real world events. The central banks of the industrialized world have the ability to manipulate, along with the influence of the wealth holders of the world to bring calm in an economic down turn. Which makes the basic principles of economics obsolete.
Well, I've got degrees in finance, accounting and law and I can tell you that in the 30's this was possible, however, today, the average investors has access to invest in the capital markets, which pretty much kills this theory.

Not saying that the big banks can't influence, because the feds definitely influence such as their twist purchases. However, they can't control and the herd can move away from them, unlike the past.
 
Well, I've got degrees in finance, accounting and law and I can tell you that in the 30's this was possible, however, today, the average investors has access to invest in the capital markets, which pretty much kills this theory.

Not saying that the big banks can't influence, because the feds definitely influence such as their twist purchases. However, they can't control and the herd can move away from them, unlike the past.
^^^^^ this = Fuzzy Fail
 
Thread starter #23
You should have saved the college tuition and checked out a copy of Economics in One Lesson by Henry Hazlitt from your local library. Would have provided you a better education than the one you received.
You should sharpen up your reading comprehension. Now go back a read what I posted. SMH.
 
Thread starter #24
Well, I've got degrees in finance, accounting and law and I can tell you that in the 30's this was possible, however, today, the average investors has access to invest in the capital markets, which pretty much kills this theory.

Not saying that the big banks can't influence, because the feds definitely influence such as their twist purchases. However, they can't control and the herd can move away from them, unlike the past.
You are wrong our little investments do not add up to the ultra wealthy. We are not even considered by the central banks. What is protected is the wealth holders of the world, because they can make big swings in the market.
 
Thread starter #25
Funny how when a voice of decent come on PF the insults are posted. I appreciate Muducks and Pops input. The rest seem to don't understand what they post.
 
Funny how when a voice of decent come on PF the insults are posted. I appreciate Muducks and Pops input. The rest seem to don't understand what they post.
I think the word you were looking for was "dissent", not "decent".

That being said your faith in central bank currency manipulation is misplaced.

See "Bailout Nation" by Barry Ritholtz
 
Thread starter #27
Case of auto misspell, tell me how the industrial central banks defied all logic and bailed us out of the great reccsion?

Free money should equal hyper inflation.

Never happened, the bail outs worked and now the economy is strong.

The traditional Marco economics laws were broken. I'm asking why the hyper inflation didnt occur?
 

Miguel Cervantes

GON Severe Weatherman
Case of auto misspell, tell me how the industrial central banks defied all logic and bailed us out of the great reccsion?

Free money should equal hyper inflation.

Never happened, the bail outs worked and now the economy is strong.

The traditional Marco economics laws were broken. I'm asking why the hyper inflation didnt occur?
This current US economy has absolutely nothing to do with any actions by the Central Banks. In fact they are losing money because of our economy and they don't like it. The war isn't over yet, but my bet is the 3D Chess Master will out maneuver Soro's and all of the other Central Bank puppet masters and leave them with a pile of Commie and 3rd world countries worth diddly.

Dilly Dilly!!! :banana:
 
Case of auto misspell, tell me how the industrial central banks defied all logic and bailed us out of the great reccsion?

Free money should equal hyper inflation.

Never happened, the bail outs worked and now the economy is strong.

The traditional Marco economics laws were broken. I'm asking why the hyper inflation didnt occur?
What does this chart tell you?

 
The traditional Marco economics laws were broken. I'm asking why the hyper inflation didnt occur?
What does this chart tell you?

As the chart points out banks were holding lots of cash. This was as a result of the Fed buying up all of the almost worthless synthetic derivatives like Mortgage Backed Securities and other Collateralized Debt Obligations as well as "loans" from the Fed to the banks to prop them up.

In the mean time the underlying assets supposedly collateralizing the fake paper were in a value death spiral because they had been bid up way beyond their actual FMV. There was no hyperinflation because the assets did not recover their value for many years and a lot of them still haven't fully recovered. There are still millions of Americans who are upside down on their home mortgage.

Now the Fed is attempting to unload its' balance sheet of all those derivatives and take money back out of circulation. The problem is they have to do it a little at a time and they aren't getting $ for $ prices.

Another little known fact is the synthetic derivative market has continues unabated and the notional value of all CDO's now in circulation is almost an order of magnitude greater than what was out there in the 2008 crash.

Couple that with runaway deficits and government debt around the globe setting new records and see what you come up with.

Throughout history after every financial bust "the experts" have said we now have "controls" in place to keep this from ever happening again (Hank Paulson - "It's contained"). Except they are wrong every time and each time the bust gets bigger.

This next one is going to be the Doozie of Doozies. It's going to be global and there won't be a bailout. It's going to be a bail in and even that won't be enough.
 
As the chart points out banks were holding lots of cash. This was as a result of the Fed buying up all of the almost worthless synthetic derivatives like Mortgage Backed Securities and other Collateralized Debt Obligations as well as "loans" from the Fed to the banks to prop them up.

In the mean time the underlying assets supposedly collateralizing the fake paper were in a value death spiral because they had been bid up way beyond their actual FMV. There was no hyperinflation because the assets did not recover their value for many years and a lot of them still haven't fully recovered. There are still millions of Americans who are upside down on their home mortgage.

Now the Fed is attempting to unload its' balance sheet of all those derivatives and take money back out of circulation. The problem is they have to do it a little at a time and they aren't getting $ for $ prices.

Another little known fact is the synthetic derivative market has continues unabated and the notional value of all CDO's now in circulation is almost an order of magnitude greater than what was out there in the 2008 crash.

Couple that with runaway deficits and government debt around the globe setting new records and see what you come up with.

Throughout history after every financial bust "the experts" have said we now have "controls" in place to keep this from ever happening again (Hank Paulson - "It's contained"). Except they are wrong every time and each time the bust gets bigger.

This next one is going to be the Doozie of Doozies. It's going to be global and there won't be a bailout. It's going to be a bail in and even that won't be enough.
So what do we do to protect our assets?
 
So what do we do to protect our assets?
Don't have any secured debt. Other than that there isn't much else you can do other than keeping your bank balance below the FDIC insurance limit. Even then if the Big One comes it will be a Bail In and you will lose all or most everything you have in the bank.
 

PopPop

Senior Member
Don't have any secured debt. Other than that there isn't much else you can do other than keeping your bank balance below the FDIC insurance limit. Even then if the Big One comes it will be a Bail In and you will lose all or most everything you have in the bank.
Avoid debt for sure. I have also been making sure that any durable goods are in place as well as food production and food security.
Hank nailed it. "They can't starve us out and they can't make us run"
 
Avoid debt for sure. I have also been making sure that any durable goods are in place as well as food production and food security.
Hank nailed it. "They can't starve us out and they can't make us run"
That too. I'm all set in ways and means for production. Prolly need to invest in some preservatives and storage capacity, just in case.
 

PopPop

Senior Member
That too. I'm all set in ways and means for production. Prolly need to invest in some preservatives and storage capacity, just in case.
And get out of the City, probably the most important action you can take.
 
And get out of the City, probably the most important action you can take.
I'm ready to bug out to the rally point at a moments notice.
 
So what do we do to protect our assets?
Don’t worry about it. Central banks have magical powers and can wipe away trillions of dollars in malinvestment without any cost imposed on society. Just ask fuzzy.
 

PopPop

Senior Member
Check Drudge for the Article in the Rolling Stone, The Five Economic Policies millennials should be pushing for.
 
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