• 1 Post
  • 153 Comments
Joined 1 year ago
cake
Cake day: July 4th, 2023

help-circle
  • You think that high interest rates keep real estate prices high? That’s the opposite of what happens with high interest rates. People can’t afford to pay as much when interest rates are high (like they are now).

    I’m judging solely based on your comments. You are using big words incorrectly. You clearly don’t understand what you’re talking about if you think high interest rates keep real estate prices high. Also, your description of Japan’s economic problems are disjointed and confused, not correct.


  • It’s not a “failed model”. Japan has issues because banks committed fraud and disguised non-performing loans. There are strict rules in the US about when assets must be “marked to market”. Plus the US has a growing population because we let in immigrants, which supports a growing economy. We are not close to having problems like Japan.

    There are also many levers the Federal Reserve can pull to keep banks in check. As I said, they can raise and lower the reserve requirement and raise and lower the overnight lending rate. This can prevent banks from going nuts with lending, but obviously can’t prevent all asset bubbles. Sometimes people are just irrational.

    Frankly you seem to be using a bunch of big words and implying that they make a point. Using “ex nihilo” instead of “from nowhere” clinched it for me. Also, you spelled “keiretsu” wrong.


  • Yes, they still have it. It’s just not in cash.

    Fractional reserve banking works because most people don’t need all their money as soon as they get paid. Most businesses keep some money in the bank too. Banks have a required percent of deposits that they must keep on hand to allow these withdrawals. And if they run low on cash, they just borrow money for a day from other banks (literally just one day). The US government can adjust the percent of required reserves or the overnight lending rate to keep banks from lending too much money out.

    Banks use this money to loan to businesses or people buying houses. It works well because whenever the money is loaned out it is used for a purchase and just redeposited in another bank. A percentage of that money is retained by the bank and the rest is loaned out again. And again and again. This way money is “created” when people buy things in the economy.








  • Clever Hans (German: der Kluge Hans; c. 1895 – c. 1916) was a horse that was claimed to have performed arithmetic and other intellectual tasks. After a formal investigation in 1907, psychologist Oskar Pfungst demonstrated that the horse was not actually performing these mental tasks, but was watching the reactions of his trainer. He discovered this artifact in the research methodology, wherein the horse was responding directly to involuntary cues in the body language of the human trainer, who was entirely unaware that he was providing such cues.

    https://en.wikipedia.org/wiki/Clever_Hans






  • Plus y’know the unreal amount of money it pays for work that isn’t even that hard once you’ve built the muscles.

    Don’t sell yourself short. Pay isn’t about how hard your work is. It’s about how much money the company makes off of you and how quickly they can replace you.

    This was obvious during the pandemic when all the “low skill” jobs hiked their wages. It turned out most office jobs were not as important as retail work, so lots of people in retail got raises for the same work.



  • KevonLooney@lemm.eetoComic Strips@lemmy.worldSome "Law"
    link
    fedilink
    arrow-up
    4
    arrow-down
    7
    ·
    1 month ago

    It’s pretty simple. You don’t care about a particular grain of rice unless it’s special in some way (maybe something is drawn on it). Prices are always dependent on what people believe about the object. The “law” just defines the general parameters.

    Also, there are many “exceptions” to the theory of gravity and apples do not always fall. Is an apple on a table falling? What about if you lift it? Oh my God, it’s doing the opposite of falling! How is that possible?!?