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No, in point of fact, I said the opposite. It is a shame that HN has become a place where people don't bother to understand the point someone is making, lie ab

by nirvana 15y ago

No, in point of fact, I said the opposite. It is a shame that HN has become a place where people don't bother to understand the point someone is making, lie about them, and then the person gets down voted to negative territory when they try to defend themselves. Not a single response to my comment has been on the actual topic of this submission. Most of them have been frankly, dishonest, and the only thing I'm concluding from this is that this site is inhabited by people who are such financial neophytes that they think there's such a thing as a "riskless transaction". So, no, you don't get to assert that I assumed something and then call me a liar when I point out that I didn't say it, especially in the face of me pointing out the difference between leverage investments or margin investments and arbitrage in the original comment, which is proof positive that I didn't say they were the same. Or, well, you can do that, but you force me to conclude that this is not a place where intelligent discussion can take place.

Retric 15y ago
"Dollars spent to pay off a loan are worth less than dollars you get at the beginning of the loan. This means, the asset you put your money into, needs to return not only enough to cover the interests & fees on the credit cards over the time period, but the monetary inflation rate over the time period." Sorry, but on top of confusing leverage and arbitration (AKA arbitration works even if your not taking out a loan but you can use a loan's leverage to increase your return). Your also making the mistake that inflation is bad when you hold another asset. If you buy 1000$ worth of wood and you get significant inflation that wood is going to be worth more dollars not fewer dollars when you sell it. When you get a loan inflation is good and deflation is bad, when you give someone a loan inflation is bad and deflation is good. PS: When you get a loan you are required to pay back X% more than than you borrowed but that percentage is normally independent of the inflation rate for some period of time. It's true that with CC they will adjust their rates based on inflation, but the only reason this could work is the rate is fixed for some period of time even if inflation changes.
- nirvana 15y ago
  You quote me saying the correct thing about inflation, then you provide an example that is consistent with what I said, and then you claim that I am ignorant. All in a thread where I responded to someone who lied about what I said, and pointed out that I didn't say that at all, and in fact, I said the opposite. But what I actually said does not matter to you, or others commenting here. You're dishonest, and a perfect example of why HN sucks for trying to have a worthwhile discussion.
  - Retric 15y ago
    I don't think we are communicating vary well. "Dollars spent to pay off a loan are worth less than dollars you get at the beginning of the loan." (This is Correct) "This means, the asset you put your money into, needs to return not only enough to cover the interests & fees on the credit cards over the time period, but" (up to here everything is fine) "the monetary inflation rate over the time period." (This is literally true, but misses the point while inflation makes this easier not harder if inflation is meaningful your not doing arbitration.) The point I am trying to make is if you have a 0 interest loan for 1 year and you buy a 1 year bond that pays 1% interest then great you have arbitrage. But, if you have that same loan buy a 2 year bond with a that pays 2% it's become speculation because the value of a 2 year bond in at 1 years is dependent on inflation and you either need to sell that bond at market rates or get a new loan. So, if inflation is important your not doing arbitration.

by nirvana 15y ago

Retric 15y ago

"Dollars spent to pay off a loan are worth less than dollars you get at the beginning of the loan. This means, the asset you put your money into, needs to return not only enough to cover the interests & fees on the credit cards over the time period, but the monetary inflation rate over the time period." Sorry, but on top of confusing leverage and arbitration (AKA arbitration works even if your not taking out a loan but you can use a loan's leverage to increase your return). Your also making the mistake that inflation is bad when you hold another asset. If you buy 1000$ worth of wood and you get significant inflation that wood is going to be worth more dollars not fewer dollars when you sell it. When you get a loan inflation is good and deflation is bad, when you give someone a loan inflation is bad and deflation is good. PS: When you get a loan you are required to pay back X% more than than you borrowed but that percentage is normally independent of the inflation rate for some period of time. It's true that with CC they will adjust their rates based on inflation, but the only reason this could work is the rate is fixed for some period of time even if inflation changes.

nirvana 15y ago
You quote me saying the correct thing about inflation, then you provide an example that is consistent with what I said, and then you claim that I am ignorant. All in a thread where I responded to someone who lied about what I said, and pointed out that I didn't say that at all, and in fact, I said the opposite. But what I actually said does not matter to you, or others commenting here. You're dishonest, and a perfect example of why HN sucks for trying to have a worthwhile discussion.
- Retric 15y ago
  I don't think we are communicating vary well. "Dollars spent to pay off a loan are worth less than dollars you get at the beginning of the loan." (This is Correct) "This means, the asset you put your money into, needs to return not only enough to cover the interests & fees on the credit cards over the time period, but" (up to here everything is fine) "the monetary inflation rate over the time period." (This is literally true, but misses the point while inflation makes this easier not harder if inflation is meaningful your not doing arbitration.) The point I am trying to make is if you have a 0 interest loan for 1 year and you buy a 1 year bond that pays 1% interest then great you have arbitrage. But, if you have that same loan buy a 2 year bond with a that pays 2% it's become speculation because the value of a 2 year bond in at 1 years is dependent on inflation and you either need to sell that bond at market rates or get a new loan. So, if inflation is important your not doing arbitration.