Is the Fed artificially keeping the inflation rate near 2%?

Discussion in 'Economics' started by farmerjohn1324, Jan 4, 2020.

  1. And none of his posts were relevant to the original post.

    Also, if you can't use your profits to invest in something else, then it is not the same. Unless you're going to say he can use margin.

    What good is a bar of gold sitting next to you if you can't use it at the grocery store?

    And unless those stocks you picked are the best picks every single year for the rest of time, then you are losing out on the opportunity cost of not being able to invest in other things.
     
    #11     Jan 4, 2020
  2. Cuddles

    Cuddles

    and that's investment; not trading
     
    #12     Jan 4, 2020
    farmerjohn1324 likes this.
  3. Wheezooo

    Wheezooo

    Mom, he hit me first. Really?

    Nope, keep going... see if you get there. Those that get there backs up against the wall and only try to defend their arguments remain blind. Those that challenge their beliefs learn to see.
     
    #13     Jan 4, 2020
  4. Read my paragraph about opportunity cost. It's not a debate.
     
    #14     Jan 4, 2020
  5. #15     Jan 4, 2020
  6. That is called margin. Even retail investors can use margin. It's just like taking out equity if you own real estate, or any other type of secured loan.

    But how do they know things will keep growing at 10-20%? It can lead to big trouble if you start defaulting on margin loans.
     
    #16     Jan 4, 2020
    Cuddles likes this.
  7. Is it the same?
     
    #17     Jan 4, 2020
  8. Maybe not exact same rates and terms, but same principal.
     
    #18     Jan 4, 2020
  9. Is it? How would you explain the existence of securities based lending that clearly caters to the really rich?
     
    #19     Jan 4, 2020