4 ms·
Rich people woo don’t have any debt and can scoop things up for cheap
by great_psy 3y ago
Rich people woo don’t have any debt and can scoop things up for cheap
- lumost 3y agoMessing with the money supply hits it’s natural end? Leave interest rates low - inflation burns up asset prices. Run high? Asset prices fall as NPV values future cash flows less. At some point we have to fix structural economic problems without the money printer.
- great_psy 3y agoHow can we fix the problem without the money printer ? There’s so much debt, individuals, corporations and governments are all deep in debt. We can just pretend the debt does not exist (restructuring) but that’s pretty much the same as printing that amount of money, just done in a different way. The only non-printer way is to get some sort of exponential productivity gain. Maybe if we get the absolutely best case for AI that could give the productivity gains we need. Obviously assuming the benefits of AI are shared in an equitable way.
- gruez 3y agoRich people aren't storing their wealth by hoarding cash. They're investing in bonds/stocks, both of which are taking a beating.
- reqqqles 3y agoHow rich are you talking? If I have 50K to invest, what am I supposed to be scooping?
- great_psy 3y agoYou could scoop up some bonds yielding 5-10% depending on your risk tolerance. Could wait for stock market to drop (if it a happens) and grab some of your favorite companies for cheaper