Economics at work!

[FFC Mariner]

We will see a 2 speed economy IMHO.

If you can stay in work, the best recession we ever had

If you lose your job? f**kedski

 

[marinermick]

We will see a 2 speed economy IMHO.

If you can stay in work, the best recession we ever had

If you lose your job? f**kedski

for sure, but the top speed will then bring the bottom speed with it

happens all the time during downturns

people have already made killings in the stock market since its lowest ebb and it is now 25% higher

 

[FFC Mariner]

Time to ease back now as the sucker money floods back in

 

[nikko]

i'm a masters student in economics. what's your point again?

money moving only has a benefit if something actually happens with it. in this example, people are just rearranging their balance sheets. the only change is that all parties are moderately less in debt. they didn't create any value, no product came out.

*if* the butcher invested the $100 in a way that made him money, the prostitute invested it in such a way that earnt her $105...

...then the movement of money has an accumulated effect.

velocity of money isn't an end in itself. product is still the end game. velocity hitting zero is an issue because people not moving money means people don't spend, people don't invest *and there is no profit coming out the back end*. the movement isn't what we're chasing, it's the profit.

go back to your dr. seuss's guide to macroeconomics - 'the money's now flowing very fast/while the bourgeois screw the working class...'

oh, wait, that was marx...

why did you talk about a hooker?

 

[dibo]

you could read the fourth post in the thread, but not the first?

 

[nikko]

you could read the fourth post in the thread, but not the first?

that is correct