LMFAO from the link, he never said anything about the land feeding people..
What farmers do with their land has a huge impact on water quality, wildlife and climate change, Kling says. The USDA has programs that pay farmers to help the environment, doing things like restoring wetlands.
The government paying farmers is capitalism? Where do I find this so I can learn more?
You can't comprehend what I posted?
This **** head bitches about climate change and the like but never mentions the land being used to grow food.
Can you show where I have even mentioned climate change?
Once again from the link...
What farmers do with their land has a huge impact on water quality, wildlife and climate change, Kling says. The USDA has programs that pay farmers to help the environment, doing things like restoring wetlands.
OK, now once again, where in Capitalism do we find the government paying business to do anything?
Why do you pretend to support things you aren't even able to defend?
The government gets the money through capitalism
Is that right? LOL
The Fed doesn't just create it?
All the same even if true (which it isn't) again, how is taking from those who created it to give to others capitalism?
For one we have to pay interest on it for two yes it's true the government gets the money through capitalism..
We didn't "borrow" the money that was used to create years and years of Quantitative Easing.
Name one bank that has the money? There is none. You can't show a single bank that has money directly from the Fed, or the Government, from Quantitative Easing.
It's in the markets. It's all that keeps it inflated. It's not even real.
No it's not. That's a ridiculous claim.
The market is made up of assets. The value of assets, does not magically change because of anything the Fed does.
Take buying a used car.
You find a car you want for $10,000.
If the Fed cancels QE, does that change how much you pay for the car? Is that guy who is selling it, going to say "Oh the Fed isn't printing money! I better sell this $10K car for $5K!"
No. Of course not.
Equally, if the Fed announces QE, are you going to pay $15K for a $10K car?
Of course not.
The value of the car, is what the value is. What Fed or government does, doesn't change the value of the car.
Same is true of assets. My stock in Amazon doesn't change, because of the Fed.
Why would it change? What do you think is going to happen?
The value of Amazon stock is tied to the success and profitability of Amazon.
Do you think if the Fed cancels QE, that people are going to wake up tomorrow and think "nah... not using amazon anymore... QE is over so...."?
Seriously what do you think is going to happen?
Do you think if the Fed announces more QE, that people are going to be sitting around "Hey I better buy that Air Fryer from Amazon, because.... QE!"?
Is that what you think happens?
So the profitability Amazon, has nothing to do with the Fed. And thus the value of Amazon stock, has nothing to do with the Fed.
The only thing the Fed does, is an extremely temporary lift or dip in the market, because people want to believe "Government is doing something!".
But at the end of the day, values will always return to whatever value is justified by the success of the company.
At the end of the day, if the company isn't making a profit, then the shares go down in value, no matter what government does. At the end of the day, if the company is rolling in the cash, then shares will go up in value, no matter what the government does.
Assets don't lose billions in value in a day.
World's Richest Lose $117 Billion in One-Day Market Meltdown
Sure they do. Nothing in life has intrinsic value. Nothing does. Gold does not even have intrinsic value.
Everything that exists, only has value in as much as people are willing to trade for that thing.
Let's say you have a Tesla Model S Performance. Car costs $80,000.
If Tesla the following day, is declared bankrupt. How much could you sell your Model S for? Would anyone buy it, knowing they will have no warranty, or might not be able to even service the car?
It would be horrific. It could lose half it's value in one day. Maybe even more.
Well, that's true of nearly everything. Absolutely everything in society, changes value, and sometimes very quickly.
When the lock downs hit, and everyone had no idea how badly the economy would be affected... investors moved their money out of stocks. The price went down.
When investors saw that many companies were doing fine, many values returned. Obviously airlines have taken a hit to their profits, and thus their stocks have not returned.
But grocery stores with drastically increased business, their profits have increase, and thus their stock values have recovered dramatically.
People were freaking out because they were concerned about Apple Computers connection to China, and the stock went down. But now we know their profits have remained strong, and Apple stock is valued higher than it was before the crash.
Nothing in all that... has anything to do with the Fed. It has to do with idiotic government policy, but nothing to do with printing money or any other nonsense.
Yes, values can change very quickly.
Bankrupt is an apt comparison perhaps. All the same, the drops are not because of bankruptcies. Very little of it is real.
No, all of it was real. Are you seriously suggesting that drops in value of say the airlines, when clearly there was a massive drop in travelers, is not a real decline in share prices on the market?
Sure. But while I like Tesla let's use it as an example. I do not believe it has made a single profit yet but what is it worth?
All of it was real. I don't even understand your statement, since it is isn't even intuitive.
Are you saying that if you own an acre of land, and you heard that the government might put in a sewer treatment facility near it, that you wouldn't sell it?
Yes you would. Because you would know that this could lower the land value.
Just like if you were looking for land to buy, and you heard a rumor that they were going to put in a water treatment plant, that you may still buy the land, but only at a huge discount.
And of course if the project was canceled, you would try and sell the land at full price.
Well... if there's a policy of a lock down, and you don't know exactly how that is going to effect business.... would you buy stock at full price? No. If you had stock, would you try and sell it quickly? Yes.
That's the market changing value. It's not fake. It's a real change in value, like any change in value.
QE was not interjecting anything other than hopes and dreams into the markets.
Sure. But while I like Tesla let's use it as an example. I do not believe it has made a single profit yet but what is it worth?
Zero if they go bankrupt. That's my point.
If you are asking why the stock has value right now, when they have not made a profit, it's the same reason Amazon's stock had value, before it made a profit.
Amazon's IPO was 1997, and their first recorded profitable quarter, was 2004 I believe. Seven years without a profit.
So what was the value? The value was that people could see Amazon was growing, expanding, and that sales were increasing. So they knew that at some point it was likely to turn profitable.
So what about Tesla?
View attachment 364031
That indicates the product is still selling, and rather strongly.
Now it could crash. But that's how investment works with new companies.
By the way, this is true of virtually every single investment in all human history. If you decide to open a business for yourself, I guarantee you that you will have some investment that needs made, before you make one penny of profit. That's normal.
So the market is seeing the increasing value of the company from the market, in terms of sales.
If I implied that the value of stock were exclusively based on profit alone, then that was not intended. It was merely an example, that share prices are dependent on market factors, not government QE or something. Government QE does nothing. Unless you have a company like Apple, getting QE directly, where you can point to an SEC report saying they got QE money, and recorded a profit or used it to invest in a new research center.... QE does nothing.
QE was not interjecting anything other than hopes and dreams into the markets.
Agreed. That would be my point. QE has almost no long term effect whatsoever. The current market prices, are due to market factors. Not QE.
QE is an extremely short term "hopes and dreams" as you put it.
The fact the market has recovered (largely), is proof... the market has recovered. QE had nothing to do with it.
The stocks that have not recovered, have not because of market factors.
The stocks that have recovered, have because of market factors.
QE is nothing. Which again, is why I oppose QE. It does nothing, except screw with Fed, and places them in a market position they shouldn't be in. It's risky for the Government to own assets, because it gives incentives to people in government to crony with political supporters on assets. We see this all over the world.
I'm very much opposed to it. No upside. Plenty of downside.
