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Currencies are the store of value of poor people, because unfortunately they don't have the sophistication to manage their wealth using assets that don't loose
by lifty 9y ago
Currencies are the store of value of poor people, because unfortunately they don't have the sophistication to manage their wealth using assets that don't loose their value. And that is unfortunate because they are taxed the most by the continuous devaluation of currencies. Wealthy people avoid the devaluation of their wealth through various sophisticated method, which leads to increasing inequality. Of course, this is only one perspective in the nebulous economic system.
- brucephillips 9y agoI suppose directly most people don't store value in currencies, but indirectly, they definitely do. Bonds are denominated in currency, and the value of stocks are derived from companies that hold assets in largely cash and bonds.
- lifty 9y agoPerhaps a lot of people own houses too, but still, I think the majority of people don't even own bonds or stocks (which can have a return). I think US people are more sophisticated when it comes to using financial tools but my impression is that in Europe most people have no clue about investing their money besides buying a house. Hell, most of my peers in my generation barely have any savings.
- philipwhiuk 9y agoMost people have some kind of pension and most work pensions are invested in some kind of diversified portfolio involving stocks and bonds.
- emodendroket 9y agoAround half of Americans own stock. http://news.gallup.com/poll/190883/half-americans-own-stocks-matching-record-low.aspx http://news.gallup.com/poll/190883/half-americans-own-stocks... > my impression is that in Europe most people have no clue about investing their money besides buying a house. Hell, most of my peers in my generation barely have any savings. If there are more Americans in the stock market it's probably because the American social safety net is very weak.