Where is the money coming from?

[athlonmank8]

I don't have time to respond to nonsense.

Yeah don't waste your time. That's all he seems to be.

 

[nooby_mcnoob]

Read my post #3, then read his post saying I've never invested a dime.

There is no point in responding to him.

https://www.elitetrader.com/et/threads/ready-to-get-started.339040/#post-4986192

 

[nooby_mcnoob]

Just pointing out what I see. A newbie overcomplicating things, thinking he is going to 'get it'. Just watch CNBC news and fade them, you'll probably do better.

 

[Scataphagos]

massive sideline cash, plus household debt compared to income is near record LOW.

We going much higher.

Market may be going much higher, but it won't be because of "sideline cash".... will be because of the Fed money pumping.

 

[nooby_mcnoob]

I was of the opinion, as were many others at the time, that the economy may be about to slow down.

I'm trying to prevent this guy from going down the rabbit hole of "understanding the market" which will _never_ happen. But yeah. Sure buddy, you'll get it.

 

[farmerjohn1324]

Little of that is in trading accounts... chomping at the bit for the right opportunity to buy. And even it it were, it would simply be transferred to another player. IOW... "sideline cash" never goes away... just transfers hands.

Then do you know where the money comes from when everything seems to go up? It could be banks creating money through increased lending. I know 1 day isn't enough to measure anything substantially, but it could still happen that everything goes up in a given year.

In your example of real estate or drugs, isn't the money also just changing hands there?

It would seem that long-term, money can be created, but never destroyed (aside from rare instances of actually burning paper money or melting coins). So perhaps, money is "destroyed" by INFLATION and that works to balance things?

 

[farmerjohn1324]

https://www.elitetrader.com/et/threads/ready-to-get-started.339040/#post-4986192

Go away.

Grown ups are talking.

 

[Scataphagos]

In your example of real estate or drugs, isn't the money also just changing hands there?

Of course, but it's leaving the marketplace.... no longer considered "sideline (financial market) cash".

 

[nooby_mcnoob]

Go away.

Grown ups are talking.

Sassy. That is very important in trading.

Your ego will blind you.

 

[farmerjohn1324]

Just pointing out what I see. A newbie overcomplicating things, thinking he is going to 'get it'. Just watch CNBC news and fade them, you'll probably do better.

I've been researching economics for over a decade.

Now stop dragging me into conversations with you.