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Stranger Reged: 03/16/05 Posts: 32557 Loc: California, US |
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Quote: I get finance and leveraging extremely well, and based on the current discussion I'm pretty sure I get it better than you. I have an MBA from a reputable college with an emphasis in finance. But that's irrelevant if I can't explain it: Quote: I get leverage. It allows you to borrow lots of money that you can use to invest. If your leveraged investment is profitable, you will make a lot; if not you will lose a lot. Either way, you have to pay back the borrowed money. Quote: I've had many lengthy discussions on fractional reserve banking showing how little people know about it. Did you know that every dollar loaned into existence under fractional reserve banking is taken back out of existence when the loan is paid back? Why Money Disappears When Loans Are Repaid Quote: Once again, I get leverage. It allows people invest more than they have. Leveraged money is not free money; it's borrowed money, which has to be paid back. Quote: Investors tend to look at derivatives to help them guess what the underlying asset will do in the future, and that might effect trading prices for the underlying asset. But keep in mind that for every derivative purchased, someone else sold that derivative, and only one of those two will make money - the other will lose the corresponding amount. A zero sum game. Quote: Again, I am intimately familiar with fractional reserve banking. Let me know if you have any questions about it. -------------------- I am in a minority on the shroomery, as I frequently defend the opposing side when they have a point about something or when my side make believes something about them. I also attack my side if I think they're wrong. People here get very confused by that and think it means I prefer the other side.
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The Ecstatic | 01/16/17 10:55 AM |
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qman | 01/16/17 11:04 AM |
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The Ecstatic | 01/16/17 12:00 PM |
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Webster10 | 01/16/17 08:26 AM |
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howsyournaggerdoin | 01/16/17 08:36 AM |
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KauaiOrca | 01/16/17 05:15 AM |
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