6 ms·

Not quite. As GGP mentioned, the necessity of keeping stock prices (and property values, and anything else securitized) high so as to not impoverish pension fun

by yterdy 3y ago

Not quite. As GGP mentioned, the necessity of keeping stock prices (and property values, and anything else securitized) high so as to not impoverish pension funds, 401Ks, IRAs, etc., is real. That is, if you care about Silent, Boomer, and Gen X retirees - who invested, but didn't save - being able to cover their myriad outlays. Millennials and younger need not apply, of course; we're just never going to be able to retire (Or afford a house. Or...). You are right about one thing: "get rich and then dip" is the mantra. Not just for executives, but for the elder half-ish of Americans in general.

madengr 3y ago
Saving is futile with a 3% loss on your money each year. Unless you invest it you are losing it.
- radlad 3y ago
  FYI, your account might be shadow banned. I vouched for this comment, but most of yours are dead.
- layer8 3y ago
  Investments come with risks. The trade-off of cash losing its value over time is that it’s relatively less risky. You split your assets into cash and investments to achieve an overall combined risk profile. In that sense, cash is just another investment with a certain risk-return ratio (even when the return is negative).
  - jdk354 3y ago
    Your cash over time is guaranteed to lose almost all its value. While, if you invest in something, it could be even gold or silver, could be a house, could be a global market cap index fund, it holds more of its value than a fiat currency does. So no, fiat currencies lose everything and even with risks involved with other investments, the risks are still less than cash. Cash over time is one of the worst investments.
    - layer8 3y ago
      It depends on your time horizon. Over a period of say ten years, cash is unlikely to lose almost all of its value, whereas for stocks the likelihood can be higher. The stock market may crash (like it has in the past) at an inconvenient moment where you’ll then be happy to have some cash on hand.
      - nine_k 3y ago
        In 10 years, at 3% inflation, cash loses about 26% of its value, and at 5% inflation, about 40% of its value. Not "almost all", but that bucket is quite leaky.
- matheusmoreira 3y ago
  It's precisely those investments which cause those losses. Those investments are nothing but roundabout ways to provide loans to people and businesses. Loans inject massive amounts of money into the economy. Massive money injections directly cause inflation by increasing the amount of money in circulation, inflating the money supply and devaluing the currency of anyone who didn't participate in the scam by saving money instead of investing it.
0xDEAFBEAD 3y ago
>As GGP mentioned, the necessity of keeping stock prices (and property values, and anything else securitized) high so as to not impoverish pension funds, 401Ks, IRAs, etc., is real. I'm confused about how your model of the economy works. It sounds like you believe CEOs are selfish and greedy when it comes to workers, but when it comes to pension funds, they keep stock prices high out of the goodness of their hearts? If liquidpele's thesis is true, and executives are looking to "get rich and dip", "company be damned in the long run", then we would expect this to be reflected in the company's stock price in the long run. The stock price is essentially the fair market value of the company. And the American stock market has been performing very well for a good long while. This entire comment thread strikes me as populist pitchfork-waving with little grounding in economic reality. Here's a question: If you're truly pessimistic about American companies, do you hold any short positions or put options? At the very least, are you overweighting non-American countries in your portfolio? And if so, which ones?
- sudosysgen 3y ago
  CEOs are employed by the board, the board is made of major stockholders, those are pensions funds and other investors mainly interested in stock prices. No need for conspiracy theories or pitchfork waving, it's just all working exactly how it's openly designed to.
  - 0xDEAFBEAD 3y ago
    If you were a major shareholder in a company, would you favor a CEO who ran it into the ground?
    - SyzygistSix 3y ago
      For short term profit that I can walk away with? That is very different from building long term value. Both are profit. One profits from creation and has long term recurring benefits, the other profits from extraction, which only happens once. Both building a fire and building a house profit from a supply of wood. But they are pretty different in terms of long term pay off.
tacocataco 3y ago
IMO it's top vs bottom, not generation vs generation. The vast majority of us are working class.
- yterdy 3y ago
  Intersectionality.

by yterdy 3y ago

madengr 3y ago

Saving is futile with a 3% loss on your money each year. Unless you invest it you are losing it.

radlad 3y ago
FYI, your account might be shadow banned. I vouched for this comment, but most of yours are dead.
layer8 3y ago
Investments come with risks. The trade-off of cash losing its value over time is that it’s relatively less risky. You split your assets into cash and investments to achieve an overall combined risk profile. In that sense, cash is just another investment with a certain risk-return ratio (even when the return is negative).
- jdk354 3y ago
  Your cash over time is guaranteed to lose almost all its value. While, if you invest in something, it could be even gold or silver, could be a house, could be a global market cap index fund, it holds more of its value than a fiat currency does. So no, fiat currencies lose everything and even with risks involved with other investments, the risks are still less than cash. Cash over time is one of the worst investments.
  - layer8 3y ago
    It depends on your time horizon. Over a period of say ten years, cash is unlikely to lose almost all of its value, whereas for stocks the likelihood can be higher. The stock market may crash (like it has in the past) at an inconvenient moment where you’ll then be happy to have some cash on hand.
    - nine_k 3y ago
      In 10 years, at 3% inflation, cash loses about 26% of its value, and at 5% inflation, about 40% of its value. Not "almost all", but that bucket is quite leaky.
matheusmoreira 3y ago
It's precisely those investments which cause those losses. Those investments are nothing but roundabout ways to provide loans to people and businesses. Loans inject massive amounts of money into the economy. Massive money injections directly cause inflation by increasing the amount of money in circulation, inflating the money supply and devaluing the currency of anyone who didn't participate in the scam by saving money instead of investing it.

0xDEAFBEAD 3y ago

>As GGP mentioned, the necessity of keeping stock prices (and property values, and anything else securitized) high so as to not impoverish pension funds, 401Ks, IRAs, etc., is real. I'm confused about how your model of the economy works. It sounds like you believe CEOs are selfish and greedy when it comes to workers, but when it comes to pension funds, they keep stock prices high out of the goodness of their hearts? If liquidpele's thesis is true, and executives are looking to "get rich and dip", "company be damned in the long run", then we would expect this to be reflected in the company's stock price in the long run. The stock price is essentially the fair market value of the company. And the American stock market has been performing very well for a good long while. This entire comment thread strikes me as populist pitchfork-waving with little grounding in economic reality. Here's a question: If you're truly pessimistic about American companies, do you hold any short positions or put options? At the very least, are you overweighting non-American countries in your portfolio? And if so, which ones?

sudosysgen 3y ago
CEOs are employed by the board, the board is made of major stockholders, those are pensions funds and other investors mainly interested in stock prices. No need for conspiracy theories or pitchfork waving, it's just all working exactly how it's openly designed to.
- 0xDEAFBEAD 3y ago
  If you were a major shareholder in a company, would you favor a CEO who ran it into the ground?
  - SyzygistSix 3y ago
    For short term profit that I can walk away with? That is very different from building long term value. Both are profit. One profits from creation and has long term recurring benefits, the other profits from extraction, which only happens once. Both building a fire and building a house profit from a supply of wood. But they are pretty different in terms of long term pay off.

tacocataco 3y ago

IMO it's top vs bottom, not generation vs generation. The vast majority of us are working class.

yterdy 3y ago
Intersectionality.