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It's crypto, the biggest bubble/ponzi that has ever existed. He never had $16,000,000,000. It's not $16,000,000,000 if you cannot exchange it without the marke
by yarg 4y ago
It's crypto, the biggest bubble/ponzi that has ever existed.
He never had $16,000,000,000. It's not $16,000,000,000 if you cannot exchange it without the market crashing.
- woah 4y agoWait then nobody has any money
- rippercushions 4y agoYup, if your "money" is in the form of tokens.
- _hyn3 4y ago(or any other fiat currency, which values are set by their country's central bank instead of backed by bullion reserves)
- colinmhayes 4y agoBezos sells tens of billions of dollars of amazon shares some years.
- lumost 4y agoAt an abstract level this is true for all capital assets to some extent. The price level correlated with the velocity of exchange for the asset class, if everyone in Boston tried to sell their house tomorrow the market would crash, even though on paper the real estate value of Boston is around 100 billion. On the other end, you can sell 100 billion in treasuries without a problem (fingers-crossed). On a day to day basis the trading volume relative to the size of the asset is minuscule. Economists track money locked into different tiers of static assets as different money supply tiers. M0 is the money that gets used to buy your morning coffee, M4 is things like government bonds and housing. There are different tiers in between for things like your car, an assembly line, or a stock. The reason the rampant money printing of the last decade didn’t effect inflation was due to the money being locked up in the low velocity tiers which have ballooned in size over the last decade. Any event which causes people to liquidate these assets such as war, supply disruption, energy crises, or disease moves inflation higher as the asset battery gets deployed to fight the crises. Biggest historical example of this was the WW2 where all sides had to adopt measures to counter inflation.
- jerojero 4y agoVery good comment, just felt the need to point out that the rampant money printing has in fact affected inflation. The inflation rates of the USA are very high but the world's reliance on the US dollar has made the scenario worse for everyone else in the world. There is no country in the world right now that is not suffering from it.
- shanusmagnus 4y agoThis was super helpful context, thank you. Question: how do they know when money migrates between these tiers? E.g., some of my paycheck goes into an index fund; occasionally an index fund gets liquidated to buy a house, or to pay for a vacation. Is there some "trigger" at certain points that lets these tier estimates get updated, or is it just ad-hoc guessing?
- lumost 4y agoIt’s estimated via surveys and other statistical approaches. The fed’s estimates can be found here. They should have links to the underlying methods. https://www.federalreserve.gov/releases/h6/current/default.htm https://www.federalreserve.gov/releases/h6/current/default.h...
- monktastic1 4y agoI don't know about you, but I'm pretty sure I could sell all my shares of stocks without tanking their prices.
- cykros 4y agoMany stock prices actually go UP when all of them are sold, at least to a single buyer. Most famously in recent history, TWTR. The amount they go up even has a name on the balance sheet: Goodwill. The other big example is IPO's. Timed well, an IPO sees shares appreciate from their private valuation into a higher amount as they hit the public market. But yes, once already public, when being sold to multiple buyers, typically you're correct, a sudden increase in supply while demand stays constant does result in prices dropping.
- indrora 4y agoMoney is fake. All money is fake.