You both like economics.
Stranger: hello
You: hi
Stranger: how are you doing?
You: ok
You: you?
Stranger: fine
You: I have a quick question
You: what's that word for an 'un-preferred' good
You: like hot dogs
Stranger: not sure if i know that
Stranger: unpreferred in what way?
Stranger: hot dogs are not preferred due to them being unhealthy
Stranger: or do you mean in economics? i dont know such terminology
You: for example, something like, if the economy is doing good
You: less of them are bought
Stranger: nope dont know economics words
You: aw
You: why are you interested in it?
Stranger: because I like money
You: ok?
Stranger: serious
You: how much do you have?
Stranger: approximately 2.2 million SEK
Stranger: its around $280k I think
Stranger: all in banks
You: from what/
You: ?
Stranger: well, I just got out of prison
Stranger: LOL
Stranger: no but seriously
Stranger: I made a lot from working, from investing in less favorable assets (at the time) and most of the money from bitcoin
You: ah
Stranger: are you interested in investing?
You: I do invest
Stranger: in what?
You: Netflix, and Corning
You: I'll diversify soon
Stranger: oh stocks?
You: ya
Stranger: https://en.wikipedia.org/wiki/Preference_(economics) this might help answer your q
Stranger: i never did stocks because I couldnt be sure what is supposed to be the backbone of a good stock. many fakes out there
Stranger: but i bought gold and greek government bonds
Stranger: would you buy greek govt bonds?
You: why?
Stranger: the price of the bonds were at all time lows during 2012
Stranger: so a 4% coupon was effectively 8%
Stranger: even more, 10% if you bought at the lowest point
Stranger: price was 40 per 100
Stranger: i managed to buy in at 50 and have been getting 8% interest for a long time now
Stranger: and they have gone up in price, almost double
You: damn
Stranger: but nobody would buy
Stranger: everyone thought greece is going bankrupt
Stranger: but nobody knew the underlying mechanics of things
Stranger: greece cant go bankrupt
Stranger: the whole eu system gets fucked then and all the debts get erased
You: smart
Stranger: but people denied this
Stranger: actually im not a smart investor. proven this many times
Stranger: people just chose to believe news
Stranger: these things occur due to news controlling beliefs and attitudes
Stranger: do you know that we are at the brink of an economic collapse
Stranger: worse than 2008?
You: I heard something like that about a year ago
Stranger: probably not regarding whats happening now
Stranger: this happened recently
Stranger: there is an index called baltic dry index
Stranger: in essence it says how good the international trade is, east <-> west
Stranger: shipping etc
Stranger: it is at an all time low. historic low
Stranger: since it started around 30 something years ago
Stranger: this means that the amount of goods being shipped have gone down drastically. says alot about how money moves
Stranger: this is also due to chinas economy about to collapse, with consecutive currency devaluations
You: hugh
Stranger: also, their stock markets have "adapted" by adding some security measure - if stocks fall by more than 7% in a day, the stock exchange freezes
Stranger: this security measure has been turned on several weeks in a row
You: which one
You: all stock exchanges?
Stranger: http://www.bloomberg.com/news/articles/2016-01-04/chinese-stocks-in-hong-kong-extend-annual-slump-as-yuan-declines
Stranger: if china fails, the global effect will be humongous
Stranger: as of now ALL indexes have gone down
Stranger: sp500, nasdaq, dow jones
Stranger: even the swedish avanza zero which is based on swedens 30 most traded stocks has gone down
Stranger: and it looks like an iceberg tip just like 2008
You: Is there a graph showing all these indexes on the same page?
Stranger: .let me get you one
Stranger: https://www.avanza.se/fonder/om-fonden.html/41567/avanza-zero
Stranger: do this
Stranger: on the bottom of the graph click "10 år"
Stranger: then on the top of the graph click on the "Jämför" and choose on the list which comparison you wan
Stranger: t
Stranger: see whats happening
You: I mean all at once
You: all indexes compared
Stranger: eh there must be some charting site
Stranger: want me to look?
You: I'm also looking
You: (and I found the word I was looking for from your link!)
You: inferior good
Stranger: https://www.tradingview.com/chart/?symbol=NASDAQ
Stranger: on the top left corner enter which symbol you want
You: http://markets.ft.com/research/Markets/Tearsheets/Summary?s=AW01:FSI
Stranger: top middle button you have "compare"
You: oughhh, you're is more technical
You: ....
Stranger: yep see how 2015 was a turning point
Stranger: and not a small one
Stranger: with lots of bad things right around the corner
Stranger: these pump and dump cycles are pure inefficiencies
Stranger: at least theyre explainable
Stranger: investors leverage themselves too much and they end up failing
Stranger: this is keynesian economics doing its work
Stranger: they think they can steer shit
Stranger: increase interest rate, decrease it
Stranger: do this, do that
Stranger: economics is a natural phenomena, not a virtual one
Stranger: so this is why I like money, but still dislike it
Stranger: because someone else is deciding how much of my money is printed
Stranger: i need 5% growth annualy to make sure im not losing money
Stranger: thats why i am buying shares of the restaurant im a chef and manager in
Stranger: on the process of buying it for 180k or so
Stranger: why, cause money wont give me shit
Stranger: all the money ive worked for isnt even a nice apartment in this city
Stranger: at least, AT LEAST I can afford to buy a business that will supply me with the money I need for a satisfactory life
Stranger: such as affording private school for my kids, if i get any
Stranger: a quiet car, a nice apartment in an area with no crime
Stranger: so do they teach you keynesian/austrian economic schools of thought?
You: taught keynesian/hayek
Stranger: you from the us?
You: yes
Stranger: cool
Stranger: sweden here
You: nice
Stranger: college?
Stranger: economics major?
You: uwplatt.edu
You: electrical engineering
Stranger: good job
Stranger: good investment
Stranger: will pay off
You: =)
Stranger: dont drop out
Stranger: also, save money
Stranger: invest in hard assets
You: thanks, talk to ya another time =J
