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 Replies: 28 / Views: 4,134 |
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Valued Member
United States
336 Posts |
@ oh my florin
People who truly understand economics normally don't flaunt that they do when just starting entry level University economics classes. Its clear in your posts you have a lot to learn. In a few years you will look back on yourself and see what I mean. Economics is a very large field with many schools of thought and you may never truly obtain expert status in the field. It requires an open mind, numerous years of dedicated study, the ability to teach others, and backing what you say with facts, data, and sources.
If you ever want to convince people that your "opinions" are correct you will need to learn tolerance of misunderstanding and be willing to explain things (you will learn a lot by explaining things to people as well, its worth it). Just going around saying I know economics and your all stupid/wrong without explaining with FACTS AND SOURCES is going to get you nowhere in life but the unemployment line in economics.
Sorry if I'm being too abrasive, I'm only trying to help and I look forward to seeing far better economics posts from you in the future as you further you education.
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Pillar of the Community
Australia
7096 Posts |
Quote:
Long live free markets the markets such as the ones found in the USA Crikey Yup I thought you had your "stuff" together until I read that line of BS. The "FREE MARKET" doesn't exist in the US while the Feds are bailing out companies and banks should have failed (free market style) Now it looks like your government is using US tax payers/Lets just print more money to fix this problem. I am NOT a Rhodes Scholar nor a trained economist But what I do know is that if you owe more than you can possibly earn you are a BAD risk. |
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Valued Member
United States
336 Posts |
By pure definition the United States never was a true free market (back when it first started is when it was closest). The best description I have seen of the United State's current system is an interventionist welfare state. The United States government continually uses its power to influence and intervene in order to get the actions it wants out of the public. I doubt I have to explain the welfare part of the description :P
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Bedrock of the Community
 United States
10284 Posts |
I started this thread and it has swayed from the topic of historical stock market vs metals typical behavior. It did that pretty quickly. My point was that not so long ago, when a stock market went up, precious metals went down as a rule and vise-versa.
It used to be the norm by my observations.
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Rest in Peace
United States
17900 Posts |
Ever see an old thread revived and then read through all of it to see what was said?
Ever wish you hadn't?
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Pillar of the Community
United States
3789 Posts |
@thenickelguy
what you have to keep in mind about markets is that correlations come and go. They are not absolute 100% rules each and every single times.
So, as an example, if you went back over a long time period, you would see time periods where both gold and the dollar went up together, gold went down while the dollar went up, the dollar went up and gold did too and gold and the dollar went down together.
Again, correlations in financial markets come and go. A common mistake that is made, probably due to insufficient time spent observing markets which is normal if one doesn't do this for a living is thinking that things always stay the same in markets.
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Valued Member
United States
336 Posts |
 Correlations are an easy trap to fall into, many of my fellow economists have fallen pray to it. (I believe it is partly due to how correlations are explained in school and professional settings alike). Just remember, correlation does not equal causation. |
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Pillar of the Community
United States
3789 Posts |
@econbrony
yes you nailed it exactly. I know many fellow traders who often make the mistake and forget that these correlations in financial markets, whether they be trading currencies or commodities as an example, come and go and are not set in stone.
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Valued Member
Canada
491 Posts |
Tom Swift we all live in the shadow of what happens when you give loan's to people who will never be able to pay them back. |
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Pillar of the Community
United States
3789 Posts |
I might add that the Chinese government has completely botched their intervention in the stock market correction, they have done more harm than good and there will be lasting damage to investor confidence in regards to FDI.
China has a very long way to go before they can take their seat with the advanced nations that understand how markets work and must be allowed to run their course.
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Pillar of the Community
United States
3789 Posts |
Well here we are month later...
and as I said here earlier, the Chinese government completely botched and mishandled their financial markets and systems.
They deserve no congratulations for trying to interfere with financial markets.
China failed on the world stage by being incompetent and were unable to show they can calm their markets. they embarked on a self defeating policy of interfering with free markets and trying to remove speculation.
This will and has caused long term lasting damage on China as this will not be forgotten and they will not be respected nor trusted again with the inflows they saw from financial markets.
China is wounded financially here and will continue to bleed and growth will continue to slow down from here on out. Meanwhile, the Chinese government will have to continue to buy US Debt to retain the last of their investments least those implode on them, to the US Treasury market they are beholden.
All in all, China failed miserably and they will not get back to where they were again.
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Pillar of the Community
United States
5835 Posts |
The domino effect happened to the rest of the world, its not pleasant anyhow that any one of the major powers causes the world economy to stall or worsen.
I am sure there would be another round of massive layoff here in the US, also may take a while to recover for many.
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Bedrock of the Community
Australia
21788 Posts |
Gold has lost a third of it's value in four years, down from it's price peak in 2011. I have somewhere around 35 gold coins, most with a high proportion of numismartic as opposed to bullion value, collected over the last 50 years or so. Actually, the current down trend in the gold price does not bother me very much. @trout1105: You tell 'em !   Edited by sel_69l
08/26/2015 09:37 am
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Replies: 28 / Views: 4,134 |
First Page
Posted 07/16/2015 06:48 am
