somrh

Blog Comment

somrh commented on Valyooo's blog post. 5:10 PM

Where does credit card debt and margin debt come from?

@Valyooo

Here's a bit of a cop-out but likely a better explanation than I can offer:

Steve Keen

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somrh commented on Valyooo's blog post. 4:18 PM

Where does credit card debt and margin debt come from?

jiltin,

Only FED is allowed to create money, no one else.

This isn't true. The Fed only controls M0 which is only a small fraction of the overall money supply. The

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somrh commented on Valyooo's blog post. 3:20 AM

Where does credit card debt and margin debt come from?

I believe the credit card debt would be like other bank loans in that it would expand the money supply (M2). The money in the purchase is credited to the seller's account but no funds are deducted from anyone else's account. 

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somrh commented on Valyooo's blog post. 4:06 PM

Why do banks accept deposits?

Well, when banks create money  they don't "print money" or anything of the sort. The loan actually creates a deposit, an addition to an account. So the deposit system is necessary for the whole process. 

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somrh commented on binve's blog post. 5:28 PM

Austerity's Spreadsheet Error

And if you hadn't seen this yet, I think you'll enjoy it:

http://www.youtube.com/watch?v=ABtlI2Wk3Ws

Blog Comment

somrh commented on binve's blog post. 4:52 PM

Austerity's Spreadsheet Error

Here's the paper:

Does High Public Debt Consistently Stifle Economic

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Blog Comment

somrh commented on reddingrunner's blog post. 2:01 PM

Buffet was wrong!

Here's a few observations:

I concur with valuemoneygreen and chk999 that part of the issue is high return on capital. To quote Munger:

"Over the long term, it's hard

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somrh commented on awallejr's blog post. 1:35 AM

What stage are we in for a BULL market?

I thought bulls had four legs :)

Blog Comment

somrh commented on Valyooo's blog post. 1:47 PM

The "pricing-it-in" conondrum

Yeah that sounds about right and it works out if you play around with a DDM and calculate NPV. Because eventually that growth will have to slow down so the price multiple will contract over time.

For example,

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somrh commented on Valyooo's blog post. 3:11 PM

Thoughts for beginners part 2: Fundamental and technical analysis are usually the same thing

TSIF,

I actually have no problem with speculation. I do it often. But I call a spade a spade. When I buy, say, a put option, I know I'm entirely dependent on the market changing it's opinion on the stock within

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somrh commented on Valyooo's blog post. 1:42 AM

Thoughts for beginners part 2: Fundamental and technical analysis are usually the same thing

@Valyoo

Eh, you can chart the price people are paying for similiar companies, or chart the cash flow...the same way you can chart real estate prices.  You're mostly right though.

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somrh commented on Valyooo's blog post. 1:39 AM

Thoughts for beginners part 2: Fundamental and technical analysis are usually the same thing

@TSIF,

long term, if one is investing they are doing so with the understanding/expectation the market is rationale

While I do think the market tends to revert to

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somrh commented on Valyooo's blog post. 2:03 PM

Thoughts for beginners part 2: Fundamental and technical analysis are usually the same thing

@Valyoo

I think the problem you cite is valid; namely most fundamental investors aren't really fundamental investors; they're just doing an alternative form of TA using "fundamental" figures instead

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somrh commented on whereaminow's blog post. 5:28 PM

Continuing My Debate with Warren Mosler, MMT

David,

Have fun with your security issues. I was goading you with the "dense" response. I don't waste time talking to people I consider idiots. (I'm not sure what income has to do with it; are they

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somrh commented on whereaminow's blog post. 2:37 AM

Continuing My Debate with Warren Mosler, MMT

David,

Are you really this dense? Seriously David, I thought you were smarter than this. I have not ONCE insisted that economics was a hard science or anything like it. Let's go back to the beginning. Your

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somrh commented on whereaminow's blog post. 6:33 PM

Continuing My Debate with Warren Mosler, MMT

David,

The example used breaks down upon further analysis but that would require a digression into physics. Eventually we'd get to the point of quantum statistical thermodynamics and I think I only spent a

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