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"If I know lots of drawers stacked with cash exist, I'll value it less." Pension funds are stuffed full of savings, and they get bigger with every passing year
by neilwilson 5y ago
"If I know lots of drawers stacked with cash exist, I'll value it less."
Pension funds are stuffed full of savings, and they get bigger with every passing year. Do they ever decrease? If not then when is that going to happen?
Are you valuing your income less because of the ever increasing level of savings?
Because nobody else is.
- willcipriano 5y agoLet's say I have a cryptocurrency and I premine a thousand units and make a hundred available for use. Those 900 could enter the market at any time and drop the value, so for me, I'd price that in. Same thing with cash in a drawer, it may exit the drawer someday.
- neilwilson 5y agoIt may, but it doesn't - because insurance and status. Similarly all the oxygen molecules in the room may spontaneously move to one corner of the room long enough for you to suffocate. But I bet you don't walk around in a diving suit.