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LOL of course. How foolish of me. Hey, just to be sure, can you help me with something?
Let's say I form a corporation with some partners, and the corporation purchases real estate, gold, "hard assets," whatever. I don't own any real estate - I just own stock of a corporation that does.
So that's not tangible, right?
Tangible assets are goods that you can touch, hold, feel, taste and see. Everything else is funny money.
i read the article.
when my bank acct gets over 250k i will begin to worry.
i dont see it as an issue now.
That's fine as long as your bank is the only one going under. Hopefully the FDIC could cover those losses. But usually all banks are doing basically the same things, and therefore when problems occur in the system (like in 2008), they affect many or most banks. If the news gets out and people lose confidence, a "run on the banks" occurs, and this is when the whole house of cards falls. The FDIC can't cover everyone's losses.
I just found out that money I had put in one savings account 3 years ago (to get a whole 1% interest) was now getting no interest at all. I called the bank and asked about other accounts they had where I could get better than "0" interest. Pretty much, they had nothing where the fees wouldn't cancel out the tiny fraction of a percent interest. Why? They don't need people's savings, or want them. The government floods them with fiat currency, and they can loan out the same "dollar" almost as many times as they want.
So I decided to consolidate that and another savings account, which led me to the internet to research which bank had the best interest rates without locking up the money for too long, while being well managed and not likely to fail. Turns out it is pretty much impossible to tell whether a bank is financially healthy or not. The reporting requirements simply aren't there (big surprise, the government that micro-manages the citizen, lets Big Business do whatever it wants). Best advice I found was check a few web sites and then look at the stock price to see if investors expected a problem. Of course the 2 companies that offered a whopping 1% interest were rated as pretty questionable on the web sites that rank banks (using what info they have).
Some days it seems smarter to withdraw all the money and bury it in the backyard, which at least would save it from a bank failure or systematic bank run.
LOL of course. How foolish of me. Hey, just to be sure, can you help me with something?
Let's say I form a corporation with some partners, and the corporation purchases real estate, gold, "hard assets," whatever. I don't own any real estate - I just own stock of a corporation that does.
So that's not tangible, right?
It is at the whims of the state. States(Fed or local) control all Corps. Just ask the GM bondholders. They lost everything when the U.S. gov took over GM.
*******
I wouldn't put to much into my mattress, maybe a couple of months worth. The only true currency is "labor". Everything else has a "trust factor". Gold, Silver, are "asset protection". Won't do you much good during an economic crash, but if you make it through a crash they would be of value during the re-build stage.
Food will be the primary concern during any currency failure. Just look at today, there are no soup lines because we have the gov issuing food stamps. If they didn't, it would look worse than the 30's depression out there.
The basic premise of the OP is valid. The gov is juggling 10 balls in the air at this moment.
Tangible assets are goods that you can touch, hold, feel, taste and see. Everything else is funny money.
The concept of funny money is one I have used myself. Not quite in the same way you do but I understand your thinking. However what is reality is that when you cash that funny money in at the current valuation and use it to secure what folks would consider hard assets. So when I convert recent market gains into real property or anything else you consider tangible hasn't that run up in funny money been good? I say this because I use to refer to the equity in my old house as funny money. However when I sold it in 2007 at 95%market peak and used it to eventually pay cash for my retirement home and to buy property at the beach that funny money became real assets and that was a good thing. So isn't the market run up in any asset really funny money until you cash it in for real funny money you can touch unlike the asset value of funny money you can't cash? I mean when gold was over $1,900 an ounce was that real money or funny money since it has now fallen well below that? Isn't real value what you can exchange something for at the current moment?
Funny money? I'll tell you what's funny - I am blinded in here by the sunlight reflections off all the tin foil.
Quote:
Originally Posted by Grandpa Pipes
Tangible assets are goods that you can touch, hold, feel, taste and see. Everything else is funny money.
Not that I don't appreciate your adorable definition, but I'll stick with GAAP and IFRS, both which for bizarre and twisted reasons consider stocks tangible. Unless there is a worldwide conspiracy in accounting standards for which I'm unaware.
Funny too that the stock market is "100%" dependent on QE considering 40% of its earnings are abroad. But I'm sure in here there is a perfectly logical explanation.
Maybe a collapse could be healthy though. If QE stops, then all my stock in Tobacco companies will disappear overnight - you know, because then everyone will instantly quit smoking.
Maybe a collapse could be healthy though. If QE stops, then all my stock in Tobacco companies will disappear overnight - you know, because then everyone will instantly quit smoking.
Alcohol and tobacco have been hit items in the past depressions. People figure that life isn't worth living so party on.
Funny money? I'll tell you what's funny - I am blinded in here by the sunlight reflections off all the tin foil.
Not that I don't appreciate your adorable definition, but I'll stick with GAAP and IFRS, both which for bizarre and twisted reasons consider stocks tangible. Unless there is a worldwide conspiracy in accounting standards for which I'm unaware.
Funny too that the stock market is "100%" dependent on QE considering 40% of its earnings are abroad. But I'm sure in here there is a perfectly logical explanation.
Maybe a collapse could be healthy though. If QE stops, then all my stock in Tobacco companies will disappear overnight - you know, because then everyone will instantly quit smoking.
You work for the gov't?? I wondered since your point of view is a reflection of the gov't propaganda lies we the people are supposed to believe.
I don't know why all these chicken littles bother to even live here. If all they have is fear of everything collapsing and always being lied to here i have a great idea.
Leave the country and live elsewhere.
Last edited by mathjak107; 04-28-2013 at 01:36 PM..
does not matter how much FDIC have
it's back by government , so it's pretty much all they can print
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