I've only been here since the crash in March but what the fuck is with all the shitcoin threads? Jesus is smg the only worthwhile thread on biz? Feels like it's gotten even worse recently.
Why does the market seem so overvalued yet money continues to be poured in? Isn’t anybody scared about the lasting effects of all this unemployment? Seems crazy to me that the nasdaq is like 5% from its all time high and sp500 is only 15% off.
Explanation of whats happening: 2008: Banks were greedy and laws were bad. Banks would give loans to bad debtors (mostly poor homeowners, but also a few businesses like airlines and car manufacturers) then turn around and sell that bad debt as "good" debt. Then everyone found out that this debt was worthless and there was a desperate struggle to reclaim losses, if any. However, home owners were not bailed out, while banks and business were. What did this mean for business? They could do anything! Welcome to "too big to fail" economy son!
Now companies found they could pump up their numbers with buy backs and loans, sending their valuation sky rocketing. And since interest rates were effectively zero, banks were happy to keep giving out loans. Banks don't make any money holding on to money, they make money on interest, so to the banks, more loans = more profits. First it was only large business with real assets taking these massive loans and pumping their numbers. Then banks encouraged smaller and smaller businesses to get massive loans. Who cares if some go under when you've got thousands of loans all safely paying you a nice interest? Nobody even thought about paying off these loans and the bank didn't care either, as long as you paid interest. If you needed money, just buy back some stock and get another loan!
>The main character of Kuma Kuma Kuma Bear, Yuna >Learned stock trading when she was ten >Gained several billion Yen by the time she's 15 Can you outperform her?
Nicholas Allen
Can I have a small loan of a million dollars like she did?
Charles Thomas
I can punch her in her smug little shit face and take all her money. How bout dat
Charles Adams
Fast forward to now. A decade of circular loaning and pumping. FED tries to raise rates and the market FREAKS THE FUCK OUT! How can we get new loans to pay off old debt if the new loans cost more?? So they start bringing rates back down. Rona comes in and disrupts business. Suddenly, people can't pay those high interest loans, even the big boys. Every company is so leveraged up and bloated, they literally have no money to pay debts. As valuations plummet and profits vanish, everyone starts panicking.
This is where the FED steps in with major repos and unlimited QE. They start buying worthless debt directly, pretending that they will be paid back later. Liquidity restored! Hooray! But what about the bad debt? Obviously these companies can never pay back the FED, and they will continue to need loans indefinitely to survive. So what happens? The big crash happens. Companies are so massively over valued in the market its complete unreal. Businesses will be torn to shreds as banks and fund managers desperately claw at any penny they can recover. People will lose jobs and this will cause a secondary crisis in the consumer sector, people can't pay mortgages, loans, credit cards, food, nobody is going to be buying new phones and TVs anymore. Here comes the Great Depression of 2020/2021
In the end, businesses used circular loans and stock buy backs to achieve insane valuation, now we will spiral down as businesses start crumbling and people can't don't have money. This is why the FED and the government are panicking. If low interest rates and unlimited QE and 5 trillion stimulus is so good for the economy. why didn't we do it before? Because they aren't good. Nobody can stop it. Its coming, so get ready.
>Doesn't sound very "passive" to me but ok I work a total of 2 hrs a week contacting suppliers to re-stock items, that's as passive as you'll get other than hiring someone to do that for you (which is incredibly easy)
>how are different countries handled in FBA I sell in .com .de and uk as well. looking to expand to France and .aus for extra income.
Though I already make enough passive income I don't really care unless I want a sports car or a side project (most likely fuel my side real estate investments here)
Sure if you're a granddaughter of the founder of a mega-conglomerate in your country like her
Matthew Davis
It all depends on Federal Stimulus. Currently unemployed NON-ESSENTIAL people are getting filthy rich off being a useless member to society. $1,200 checks are shipped out with more along the way. People are still spending on goods like food, home goods and video games. Money is being circulated around, so far, just in different industries. Negative Interest rates should also help if we go that route.
If Q2 comes up with HUGE negatives, I'll hop aboard your doom train, but so far, there's cash circulating through the economy with more along the way. In order for an economic recovery with little implications, we do need a big stimulus package that forces people to spend money. Then we can let the Golden Bull Run commence.
Colton Martin
Quarantine pajeets acquired 100x more power in the scamcoin shitfest
Easton Powell
TSLA getting ready to blast off again calls are gonna be cheap monday and tuesday providing it waits a day or two to launch.
Gavin Rogers
>$1200 >filthy rich >Q2 Every company has already said Q2 will be worse. Amazon literally declared ZERO PROFITS in Q2. You're still being fooled by "recovery" rhetoric. There is no recovery. You think we just had the biggest market disruption in history and we just recovered in 2 months? How can ANYONE believe that?
Leo Sanders
tottaly natural death, nothing to see here goy....I mean people
Eli Gomez
I'm intrigued. What will cause TSLA to moon?
Adam Sanders
It just took:
>unlimited QE >up to 4$ T. deficit this year, not taking new relief packages into account >a few zombie company bail outs >0% interest
looking bullish.
Easton Baker
all it takes is a tweet or a rumor. meme stocks are like the lottery
John Reyes
>Goldman Sachs says its worse than they previously estimated BULLISH
TSLA is nearing the end of its consolidation period after the previous run up... getting ready for a big move in 1 direction or the other... I'm guessing it crabs Monday, Tuesday, blasts off Wednesday but we'll see.
Gavin Barnes
Yeah maybe, I actually think I am going to gamble some puts on it, I have a feeling about it.
It must really suck to have not gotten in DraftKings under $20, the real question is what are you waiting for? This stock is going triple digits niggers
Brandon Walker
Buffett dumped all of his GS on Friday before close
600 a week federal unemployment 100-400 state unemployment 1200 stimulus checks
For a NON-ESSENTIAL faggot, that's likely double their normal pay in the past 2 weeks.
It all depends on their spending habits. If everyone chooses to hoard money, we're fucked and I'll be buying SQQQ, Gold and shorting Macy's and Harley Davidson. Doesn't point that direction yet.
Charles Kelly
>Quickly goys, sell your bags to us before it's too late, we wouldn't lie to you about the market!
