On Sep 19, 6:17*am, "Brenda Ann"
wrote:
"First Post" *wrote in message

...

Even if it is sitting in a bank savings account it is invested.
Seems one of the problems with the liberal mentality is very few of
you financially illiterate doofuses actually know what investing is.

Why do so many see the need to swear. It's as if they don't
know how to argue a point.

Before getting into this I'd like for people to understand the
distinction between physical and financial capital.

When money is put into a bank and the bank lends it out
what they are lending is financial capital. Financial capital
is really nothing more than an aggregate of promises. Consider
the confederate currency. It had value then it didn't. The value
of money is its value in trade.

Singer found it chould find people who could afford to pay cash
for their sewing machines so they sold them on time. That is
they sold them for more money than they cost to build and
"lent" money they didn't have but represented value people
were willing to "borrow". The created money out of thin air.

A couple of decades back the movie "Trading Places" came out.
In it two brothers make a bet about the lives of two people.
The back drop is the commodity market. As it turns out the
brothers were getting an early peak at the orange production
report. Getting one's hands on this report would give them
an advantage since they could trade on private information
before it was anounced to the public. The tables were turned
and they lost their ****s.

A few decades ago the Hunt brothers tried to corner the silver
market. The price shot up from $5 per oz to $50 per oz. Bigger
fish restored the market but a lot of minnows were hurt in the
process. There is value in use and value in trade. One of these
values is internal where the other rests upon markets of aggregate
supply and demand and marginal rates.

There is a options trading model known as Black-Scholes.
One doesn't need to know it inside and out to understand
the concepts. The idea is there is a premium for risk taking
and that risk can be quantisized. Traders can use this to
help them decide if an option is over or under valued.

Everyone is susceptible to risk. The poor can lolerate less
risk because they can't weather it as well. Retirees who
live close to or beyond their ROI can't tolerate much risk.
For all the talk about how much better investors the rich are
much of it just boils down to being risk tolerant.

The cash economy is just above barter. The risk referenced
above is one of performance and promise to perform. When
people can't tolerate even small risks they trade as close to
goods as they can and for the goods they need for current
consumption and production.

The right wing has no idea of the system of privilege they
are promoting. They don't care one whit about rewarding
hard work. Instead they want to increase the return to those
who find themselves in a position of power that allows them
to tolerate risk and make sure hard work is rewarded by a
constant pressure of demand approaching the risk free return
so the masses have no chance to set aside anything for their
future.

Like a casino, a few winners are good for the business but
most have to lose.