User Power
Value/Post Ratio
134%
- Aug 17, 2013
- 675
- 906
I have a somewhat solid grasp on money and the monetary systems. I've been researching economics about twice as long as I have been studying business. Well ever since the bailout anyways.
Supply of something goes up; Value go down. It's why gold is so valuable. It's why platinum is so valuable. It's why a McDouble isn't.
However I don't understand the concept of rapid devaluation of assets. Assets being investment vehicles like houses(Cash-flow positive) or gains from stocks(businesses). Unless there are other assets I'm missing, I think I've covered the broad spectrum...
I understand that the market determines the price and interest rates. I understand that right now it is heavily manipulated by the federal reserve. No bueno.
Supply of something goes up; Value go down. It's why gold is so valuable. It's why platinum is so valuable. It's why a McDouble isn't.
However I don't understand the concept of rapid devaluation of assets. Assets being investment vehicles like houses(Cash-flow positive) or gains from stocks(businesses). Unless there are other assets I'm missing, I think I've covered the broad spectrum...
I understand that the market determines the price and interest rates. I understand that right now it is heavily manipulated by the federal reserve. No bueno.
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.