Author

Topic: The slowdown of economy growth around all world- How you lose your money. (Read 430 times)

legendary
Activity: 1218
Merit: 1007
...

Usually owning productive capital assets is a good thing to ensure reliable income stream and/or capital growth into the future. 

Productive capital to me means tangible things that add to economic growth: chip factories, railroads and oil & mines (as examples).

But, in recessions, demand for goods and services declines, that usually means that productive capital assets become worth LESS for the interim.  A look at recent stock prices for some capital assets is instructive:

MU (Micron Semiconductor, they make memory chips)
UNP (Union  Pacific railroad) and GMT (GATX, leases railway cars)
FCX (Freeport-McMoran, large copper & gold producer)
SLB (Schlumberger, oilfield services)

All down big.

On the other hand, when the world economy recovers, there could be lots of money to be made in productive assets...
Typically the most valuable goods are the ones that are durable, and have tangible value. Just like cars, or even computers, if it can last a long time or be repaired over a long period of time in a way that it would cost less than replacing it, they retain far more value than any other good.

The same thing goes for productive assets, if they have a way to produce value through their use, they will equally be valued along with the good.
legendary
Activity: 2940
Merit: 1865
...

Usually owning productive capital assets is a good thing to ensure reliable income stream and/or capital growth into the future. 

Productive capital to me means tangible things that add to economic growth: chip factories, railroads and oil & mines (as examples).

But, in recessions, demand for goods and services declines, that usually means that productive capital assets become worth LESS for the interim.  A look at recent stock prices for some capital assets is instructive:

MU (Micron Semiconductor, they make memory chips)
UNP (Union  Pacific railroad) and GMT (GATX, leases railway cars)
FCX (Freeport-McMoran, large copper & gold producer)
SLB (Schlumberger, oilfield services)

All down big.

On the other hand, when the world economy recovers, there could be lots of money to be made in productive assets...
full member
Activity: 125
Merit: 100
They help rich because they believe the rich will give jobs to the poor.

However this thesis has been proved true, it faces heavy resistance to change.
full member
Activity: 238
Merit: 100
NOW, the market is experiencing a sudden loss of capital.
The DOW jones has been dropping since early of this year. What factors is causing these problems?
The drop of value in yuan, the  North Korea’ nuclear bomb problems or others?
Let see some graph,
The pump of money in QE started in 2008 and end in 9/2012. It has greatly increase the money(monetary base) in market,
you can see the effect of QE 1, QE 2 AND QE 3. source : https://research.stlouisfed.org/fred2/series/EXCSRESNS


The DOW JONES effect is very obvious, it has increased so much from 2011 until 2015(CNN only provide 5 years track back).
I believe before 2007, the value is much lower than 2011. So it has increased very much. source: http://money.cnn.com/data/markets/dow/



The reason of dropping is that FED is taking the currency back, u can see from the sudden drop in figure 1
 and the worse is that the increase of interest cause people don't want to invest their money into market.

The FED are pumping money into market, help majority?
The unplanned QE method are pumping money to help rich people while poor people aren't benefit more than rich people.
That why the richer are getting richer, the poor are getting more pore.
Can u calculate how much percentage of your personal wealth increase compared to rich people or DOW Jones market?
If FED are collecting back their currency, who will benefit?
So can anyone list some accountability bitcoin trading website(volume of buy/sell) or statistics for me,
so that I can see whether sudden drop of bitcoin value is relevant to this adjustment of monetary base.
Thanks.
Jump to: