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Old 2011-07-10, 00:03   Link #14705
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Originally Posted by SaintessHeart View Post
I'd say those investors should just go turn themselves into soylent green - TRADERS can do that, but not INVESTORS.

Debt is something one should not hold for long, as simple logic dictates. An EMD is still a debt, and as much interest as one can collect from buying the bond, there isn't any point in holding it for too long because your capital is at stake there.

And your capital is always larger than the total interest earned in the bond. It is compounding that makes big money, but the longer a debt is owed, the more likely it is going to be a bad debt; there isn't any time for the compounding to churn out a 500% profit.

While one may argue that this isn't a problem because the investors are pooling in their money, they forget that most, if not all investors, use something called leverage. And where does the proportionate money from the leverage come from? Central banks. And where does the money from the central banks (as of 2009) come from? The government.

And where does the money from the government come from? *sarcastic*

I wonder if this is the cause of math being taught in school around the world - the East teaches drilling, while the West simply skim over it. Nobody is teaching the application of critical thinking and case studies to it - just formulae and concepts.
Right, well, we know where all the companies I've been calling for the past year are gonna end up in a while. It's not good to keep money that's constantly coming out of thin air. Debt of any kind shouldn't be held for long, but of all the things they invest in, I'm really surprised that it's one of the more popular options after Equities.

But yeah, the problem is precisely that nobody teaches using proper case studies and applications of the theories and formulae that's taught in textbooks. Really doesn't give people the opportunity to think about what they're studying and simply being taught to think.

Originally Posted by synaesthetic View Post
And they only need one semester of statistics... what?

Statistics is nothing but tables and record-maintenance, really. Especially when it comes to something of a more practical nature.
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