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They literally threw the country into a recession? Also, the average person isn't writing mortgages. A better example might be the average investor in a compa
by mech422 5y ago
They literally threw the country into a recession? Also, the average person isn't writing mortgages.
A better example might be the average investor in a company.
The average investor loses everything if a company goes under. Some creditors might get paid, and if they're lucky some 'preferred stock' holders might get something. But the average person (common stock) loses everything they put in..
I'm not really seeing much of a difference ? There is risk in everything...If you can't afford to lose, then don't bet?
- slg 5y ago>I'm not really seeing much of a difference ? There is risk in everything...If you can't afford to lose, then don't bet? The difference is that intrinsic value provides a floor for potential losses and therefore reduces risk. If you can't understand why a worst case scenario of losing 20% of your investment is better than a worst case scenario of losing 100% of your investment, then I don't think you and I are going to have any constructive discussions about investing.
- mech422 5y agoWow - I specifically called out that most people don't write mortgages, presented what I thought was a relevant scenario for the 'average person' ... And you specifically go out of your way to pretend you didn't see it/understand it? Yeah - 'constructive' doesn't seem to be likely