andrevvo

4 ms·

1.
by andrevvo 10y ago
Culturally, a Communist nation will be significantly more different from a Capitalist nation (compared to U.S. vs Nordic capitalism)
2.
by andrevvo 10y ago
Yup, best way to think about them are as bonds in which the credit rating is determined by the underlying asset quality rather than the company itself.
3.
by andrevvo 10y ago
These firms inject capital into the economy efficiently and effectively, which then allows firms access to the financial resources to develop technologies to apply to "healthcare or general science". Can you think of a better way
4.
by andrevvo 10y ago
This is completely misguided as AnimalMuppet pointed out. The following is a decent article explaining how shorting works: http://www.investopedia.com/university/shortselling/shortsel...
5.
by andrevvo 10y ago
Mortgage payments are bundled into securities called RMBS. By shorting these securities, you are not shorting the mortgage company, but the assets themselves (the mortgage receivables).
6.
by andrevvo 10y ago
Of course a gold standard would limit the creation of money, but the ability of banks to increase the money supply would still exist under fractional-reserve banking. https://en.wikipedia.org/wiki/Fractional-reserve_ban
7.
by andrevvo 10y ago
I think you are talking about fractional-reserve banking, which has been around for hundreds of years. This can exist with or without a gold standard.
8.
by andrevvo 10y ago
It's a lot more than electric bits. Banks and other financial institutions allocate capital in the economy. By efficiently and effectively injecting capital into the right companies/sectors, the economy and standard of living will
9.
by andrevvo 10y ago
In regards to "value" for food, let's consider beyond a certain universal unit of sustenance. For example, imagine two pieces of fish that are identical in size, nutrition etc... However, one was simply grilled by a fisherman