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One could argue that some inflation is needed to make the labor market more flexible. Nominal wage cuts are not easily accepted by most workers, when some inflation is the norm real wage cuts are possible in a sector or company with low profitability by keeping the nominal wages steady. But...

Lol damn these baby boomers, first they pull Europe left, then they will eat up more than the market offers when they retire. Anybody old enough to remember what happened with market regulations 1966-1983? or any other losing period for that matter.

The majority is ALWAYS long. If X shares are shorted, (shares outstanding) + X shares are held long. The majority is not ALWAYS RIGHT, in Europe the majority is LEFT.

But what creates these tops and bottoms? Is having a central bank compatible with true freemarkets? Does the fed creates bubbles or avoid them from materializing?

In a true free market the majority does better than the majority in a market that is not free. This means that in absolute terms the majority should prefer free market. This I state because I believe a true free market waste less resources(less fighting for tax money), and creates more...

The figures for overall GDP Growth are in real terms. Nominal GDP growth for 3Q is 1.6%+2.5%=4.1%. Two quarters with real GDP growth under 0% would bring the economy into a recession according to the above definition.

Labor, capital and new ideas creates wealth. Wealth is stuff or physical property. Most often wealth creation occurs within a company. Consumers and often Government consume wealth, which is to destroy wealth. For every Pizza eaten there is one less pizza in the world, but consumers have earned...

Money makes it so confusing to understand why the stock market is non zero sum. In the economy at a given time there is this amount of physical property. XX shares represents all the physical property. Let’s imagine there is a big poker game where shares are the poker money. In this game what...

Ok I have two apples u have two oranges, I prefer one apple and one oranges u do the same so we trade. We both benefit from the trade. No real wealth is created, but our utility is higher since we both subjectively value what we have now more than what we had. This situation is supposed to be...

Whitster ur very convincing but u can’t prove that u are right. So far creation > destruction. But who knows maybe we nuke each other to death, maybe Armageddon, maybe aliens will attack us. In the Armageddon case stocks are zero sum from beginning to end? There is no way of knowing that the...

The market has served traders at the expense of investors the last 10 years, maybe the market has too many traders and too few investors these days?

I feel so complacent equity indexes rising just as expected, but under the surface I see deflation fear, and a world starving for yields. Doesn’t matter equity indexes can rise much more as PE rates increases.

Very true

Is it true? That the smarter u are the worse the world looks? Let’s assume, there are good people and there are evil people. The evil people lie, deceive and abuse power for personal gain. Those who don’t see this are stupid and happy. Those who do see it could be unhappy if they are good...

Good post shorty mcshort

Every trade have influence over future trades, but does that also mean it decides future trades?

Chaos and randomness would be created?

The market is the best educator. Americans need education.

If the printing press was turned off there would be naturally deflation assuming growth. Growth in production would cause more goods to chase fewer goods. So to combat this deflation money is printed. The good news is that normally the fed and the government would benefit from a pro growth...

If it’s possible under the conditions I mentioned above it’s not too good to be true at all. It causes a real slowdown, americans lose relative purchasing power and its wealth transfer from households too government or the fed. The bigger the deflationary forces are, the more wealth can be...