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You guys are forgetting one basic truth -
When an individual goes bust, a bank comes and takes his house, with full backing from the state's legal apparatus.
When a bank (or some other big business) goes bust, the state comes and takes money from individuals and gives it to them to keep them afloat, with the full backing from the state's legal apparatus.
Is it possible that I'm the only one noticing something's wrong here?
More corn! Why? Because it pays more.Quote:
Originally Posted by Papewaio
There is nothing wrong, because banks are the true creative class and without them we would be nothing. They should be afforded more broad allowances than the average Joe, and we cannot allow them to fail under any circumstances EVER because then who would I steal pens from, huh?Quote:
Originally Posted by Sarmatian
DELETE
The futures price doesn't drive the market price it's the actually the market price that drives the futures price.Quote:
Originally Posted by SoFarSoGood
If grain goes mad dear this year then people will react accordingly with a futures prices that protects them against it going any higher.
What you say is partly true - prices are rising as there is/has been a drought in the US but the reverse is also true, the futures prices (just like normal shares or Government bonds) rise and fall on the amount of the demand from investors.Quote:
Originally Posted by gaelic cowboy
Yes, you: http://en.wikipedia.org/wiki/Federal...ce_CorporationQuote:
Originally Posted by Sarmatian
Also, if the collapse is big enough to threaten the well being of the state, the state will take measures to protect itself.
Indeed but this demand has an upper and lower level bound by the market price of the resource.Quote:
Originally Posted by SoFarSoGood
basically there is a point beyond which it makes no sense to hedge anymore, this can be driven because the potential price of the resource will eat your future profit.
That will generally mean you will try to price below tomorrows price(assuming market price growth) and will probably have to offer something above todays price.
However not everyone prices for profit sometime it's for access, for example a brewery needs barley so they offer a high price to encourage planting for a stable supply of quality barley. (although usually it's a straight contract for delivery at a set price)
Quote:
Originally Posted by Gelatinous Cube
PJ is speaking economically - his point is that if your Labour does not have economic value you cannot participate in the economy. For example, what is a ditch digger to do in a world full of mechanical diggers? He's out of work and on the dole.Quote:
Originally Posted by a completely inoffensive name
No, he gets the same and you get a bigger profit margin.Quote:
Originally Posted by SoFarSoGood
I don't think he really gets it.Quote:
Originally Posted by gaelic cowboy
SFSG - the Futures Market is a Market for contracts. The price going up and down on the market is not the price the farmer gets, it is the price the traders pay eachother to hold that contract until delivery. The trick of the Futures market is to buy a Future which was set at a middling price when everyone thinks that price has overshot, traders sell the Future at a loss and as a result you make a bigger profit than the person who originally held the Future when the price rises again.
Long article. Me lazy. Explain in few sentences.Quote:
Originally Posted by Vladimir
Did you just turn communist on me here?Quote:
Also, if the collapse is big enough to threaten the well being of the state, the state will take measures to protect itself.
Americans realising that once capitalism has chewed and swallowed everyone else, it will come for them.
And the Fragony, righter than the righter, feels comfortable because of the employment protection and social programmes of left-leaning Netherlands :laugh4:
I love it guys.
Small bank fail, people get money back.Quote:
Originally Posted by Sarmatian
Large bank fall down go boom, make economy sad, state pick bank back up.
State covers savings up to a certain point, me get that, me knows that.Quote:
Originally Posted by Vladimir
Does it cover home sweet home or only personal savings?
That's an excellent question and fortunately I don't have any experience with that.Quote:
Originally Posted by Sarmatian
What I know for sure is that "too big to fail" should not exist as it is a national security risk. But, if it does, it must not fail.
Edit: Why are we back to the bail out? So confused.
Most states guarantee for personal savings up to a certain point, depending usually on the strength of the economy. Even in Serbia the state guarantees for personal savings up to measly 5000 euros.Quote:
Originally Posted by Vladimir
Real estates and investments are not covered usually - which means that if you as individual make a bad investment, you lose everything, usually to the big business. If big business makes a bad investment it gets bailed out with your money.
I mentioned that as a response to PJ's "lower and middle class have only themselves to blame for why they aren't the upper class". It's not that simple and quite frankly, it shows that the system is biased.
Well, he's not entirely wrong. It is quite easy to become rich in this country; however, the pursuit of wealth may become an end in itself at the expense of everything else. It's all about choices.Quote:
Originally Posted by Sarmatian
What a surprise. A society based on accumulating wealth ends up being a society that favours a self serving wealthy clique and disregarding those whose motives do not stem from avarice.
Avarice? She is a great musician and the voice of our generation, but I am not sure what she has to do with the conversation
She's going to bring about a new America through a series of cutting edge MTV stings.
Yes, and a society based on buggery and poor dental hygiene can rule the seas.Quote:
Originally Posted by Idaho
Pakistan does not really have so great a navy, braQuote:
Originally Posted by Vladimir
I am certainly not in favour of 'cliques'/'large businesses interests' or semi- monopolies, whichever you chose to call the global business companies and hedge funds and all the rest. Any feeding an monopoly is NOT good for the market: The banks should have been allowed to go the wall after Lehmans and there should be no such thing as 'too big to go broke'. Real people and real growth is NOT 'corporate' but small businesses that put food on the average table. But all small businesses today are potential giants tomorrow who may be public companies and listed.
Ok stock holders at the initial launch pay the premium that carries the company forward for more investment etc (fb investors at the start) but if you and lots of others buy the shares the company value goes up. In the end this results in them have a greater total value and they can invest more.
It's no different essentially with futures on grain and rice. Long term the producers profit from a high price.
You say that but I'll laugh when Strike has to wear a hijab.Quote:
Originally Posted by Major Robert Dump
It'll be immensely funny, until you realise they're after you next. Your avatar will need to change: the outfit will have to go, you will down your last dikke pint, kiss your last ferme griet goodbye and finally have to settle for dried flowers...Quote:
Originally Posted by Vladimir
Strike to take the green? I've heard rumours...
OMG OMG OMG OMG OMG OMG OMG OMG OMGQuote:
Originally Posted by Papewaio
NO BACKSIES