subprime - it takes a cartoon to understand this stuff... - Page 6
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Thread: subprime - it takes a cartoon to understand this stuff...

  1. #51
    Here's an interesting caveat to the previous article. There are a few ways fiscal tools can really have inherent value in and of them.

    A bond is a kind of legal instrument that might permit you to dictate terms to the issuer (if you're a large enough creditor) or perhaps to take their things. Without this right (think foreclosure) the fiscal instrument has less value.

    A stock provides you voting rightsso it's possible to throw the directors of Microsoft out in the event that you have enough shares.

    Finally, once I worked at Fidelitya rep could occasionally get a call from a customer who wanted to buy 1 share of Disney. Then they would ask us to perform a move and ship, meaning they wanted the actual certifie delivered to them. Why? Because Disney's actual certs have been a work of art. They had pictures of the characters and children loved them. So parents could buy 1 share for their children so that they might have the certifie. It had value in and of itself. I really don't know if Disney nevertheless difficulties these certs or not.

  2. #52
    Quote Originally Posted by ;
    Since Disney's real certs were a work of art. They had images of the characters and children loved them.
    I guess the title of this thread is correct - it requires a cartoon to understand this stuff.

    Actually Marx's idea of alienation of the employee and of Socialism isn't anything similar to its real world manifestations either. Most people from capitalist societies are taught to be allergic to Marx, rather than even bother giving him a chance, but in fact his thoughts were just way ahead of their own time. The most advanced capitalist societies nowadays are actually moving towards his version of economic democracy, perhaps without even being aware of it.

  3. #53
    Uh-oh, a socialism vs capitalism debate.

    I'd say Marx was naive about the world, about human beings, and their faith, as the capitalists you talk about. And if you've read the Manifesto, he scorns socialism in favor of communism. Being forex traders, I think we change the topic


    Quote Originally Posted by ;
    I guess that the title of the thread is correct - it takes a cartoon to understand this stuff.

    Truly Marx's notion of alienation of the employee and of Socialism is not anything similar to its real world manifestations either. Most people from capitalist societies are educated to become allergic to Marx, and never bother giving him an opportunity, but in fact his thoughts were just far ahead of the time. The most advanced capitalist societies today are actually moving towards his model of economic democracy, perhaps without even being aware of it.

  4. #54
    Minding the Hegelian dialectic concept of thesis, antithesis and synthesis on it's mind by substituting its Platonic idealistic component together with the honorable component of Marx and Engels?


    MY FRIGID NORWEGIAN ASS!!!! :

  5. #55
    Quote Originally Posted by ;
    Uh-oh, a socialism vs capitalism debate. . .Being forex traders, I believe we change the topic
    See what I mean about being allergic to Marx?

    Anyhow, his earlier work is a little less extreme, but in the Manifesto he does not leave the idea of alienation of the employee. And who knows maybe even communism will have its day. The sun even shines on a dog's ass.

    But I think his primary purpose was that naivete you cite. He assumed that everyone is like himbut to be honest, some guys don't have any intention of taking control of their destiny, and are perfectly happy being cogs in the system before realizing it.

  6. #56
    Hi All,
    I hear many individuals here calling govt bonds wealth.
    If they may be kind, that I would like to issue said some 20 year IOUs to your USD of any amount convenient at prevailing market reduction.
    Any takers?
    So what are govt papers, is not they merely govt IOUs.
    How is it that a promissory note be wealth is beyond my understanding. Once you convert your chilly cash for a promissory note., you instantly, become a lender of a debt. Ie stakeholder upon maturity of an advantage. God forbid that any unforeseen possibilities may occur to the debtor, you are left with banana wrappers.
    For people who insist that bonds is wealth. I would really prefer to sell you a few cambodian papers, if suits.
    Even though nothing was to occur to the debtor, but if inflation should gallop inside the waiver of hold, it becomes a depreciating asset aka a liability . At best it could be considered deferred advantage, but to qualify it to get wealth I believe is basically wrong.

    Gold is wealth. I qualify that it is wealth, only due to its exchangability. This it's accepted and may be bartered or traded for goods and services, ANY WHERE in the world. Thereby making it, store of value ie wealth.

    Riches:- gets the capability to obtain goods and services on demand.

    By WW2 USD has gained status to Paper Gold,(ie wealth) due to its capabilities.
    But lately, more paper compared to gold status due to the US trade deficiency. So not wealth anymore.

    On a more personal note, health is wealth. LOL

    Just my 2 cts.

    A,,, about governments, a.. . Sorry, out of the league.
    Only thing I could say is that a bad government is better than no government.

    regards

  7. #57
    Quote Originally Posted by ;
    Even though nothing was supposed to occur to the borrower, but if inflation should gallop inside the tenure of hold, it becomes a depreciating asset aka a liability .
    How about TIPS then? Using a NEGATIVE yield, I could add. What a joke.

    But anyhow, you hit it right on about inflation. That's exactly what I was trying to state in my previous article about banks having the ability to lend cash that they do not have and if they (big surprise) get into trouble, then the Fed bails out them by printing longer. Socialism for the wealthy, as Jim Rogers will say. Losses are socialized through inflation, while profits are privatized.

    And about gold it is the same thing. The dollar WAS riches while it workedgold is riches while it functions, that is because you said, while it is exchangeable for things. However, the simple fact remains that gold has very little inherent worth, that's worth outside of a complex, coordinated, generally law-abiding society, and so it too may lose its standing as riches.

  8. #58
    Quote Originally Posted by ;
    Gold is riches. I qualify it is wealth, only. This it is approved and can be bartered or exchanged for services and goods, ANY WHERE on earth. Thereby making it, save of value ie riches.
    I certainly see your point about their capacity to lose all value. But bonds backed by the US treasury have close to zero default risk. In fact tbills ar e considered risk less in the world. Sure there's interest rate risk, but that can be avoided by buying short term bonds. I think the zero default risk makes the bonds consistently exchangeable and consequently provides them inherent value. However, this point could be debated either way, I dont notice that a very clear and factual response here. I would be in your side except I cant get away with the fact that a man who possesses 10B in treasuries is most definetely wealthy in my eyes

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