Hey there! Sign in to join this conversationNew here? Join for free
    Offline

    3
    ReputationRep:
    (Original post by illegaltobepoor)
    Actually it doesn't. There are dozens of idiots who have brought into this wealth religion and some have even spent 50 grand on wealth gain courses. Its hilarious to be honest. Watch this video.

    Some delusional people there.
    I found it so hilarious, how she seemed better off before than now. HAHA
    Investing 50K in free information is idiotic. Not only will she had to pay for the information, but also they will need to pay to test the information they have.
    Offline

    3
    ReputationRep:
    (Original post by Zenarthra)
    Earning 100k is not the same as making 100k.
    You pay capital gains tax.
    I could earn 100k salary but only make 80k.
    Your net worth has grown by 80k.

    Unless by earning you meant making.
    Offline

    3
    ReputationRep:
    (Original post by Quady)
    Sorry, whats the difference?
    You pay capital gains tax short and long term.
    I could earn 100k salary but only make 80k.
    Your net worth has grown by 80k.

    Unless by earning you meant making.
    Offline

    19
    ReputationRep:
    (Original post by Zenarthra)
    You pay capital gains tax.
    I could earn 100k salary but only make 80k.
    Your net worth has grown by 80k.

    Unless by earning you meant making.
    I said earn over £100k, If they earned £300k, they would surely make over £100k wouldn't they?

    You don't pay capital gains (or any other tax) on spread betting do you?
    Offline

    18
    ReputationRep:
    (Original post by Zenarthra)
    Some delusional people there.
    I found it so hilarious, how she seemed better off before than now. HAHA
    Investing 50K in free information is idiotic. Not only will she had to pay for the information, but also they will need to pay to test the information they have.
    I've put up a new thread with a even better video. Will show you why we live in a Banna Republic and will flip your whole world view upside down.

    http://www.thestudentroom.co.uk/show....php?t=3075041
    Offline

    3
    ReputationRep:
    (Original post by Quady)
    I said earn over £100k, If they earned £300k, they would surely make over £100k wouldn't they?

    You don't pay capital gains (or any other tax) on spread betting do you?
    Ah right my mistake, and yes you dont pay capital gains tax on spread betting, but its rather classes as gambling than investing.
    Online

    21
    ReputationRep:
    (Original post by saayagain)
    That is a contradictory statement. In this economic model, continuous growth is pursued and house speculation is the the chosen method of achieving this. All the developed countries have housing bubbles. Why? it's an easy way to make it look like your economy is growing and it appeases the capital which can leave your country at any time. It creates shell jobs to relieve the pressure on the government for job creation. People feel happy when house prices go up, even if they do not own one lol.

    The BOE is redundant. Interest rates will not rise for many years, they know that the employment figures posted by the government are crap, they know real wages is decreasing, they know inflation is higher than stated, they know banks have issues with liquidity traps, they know banks are over leveraged, they know the economy is doomed so its all a game. Something will trigger interest rate rises or credit defaults then its game over. Credit will freeze up and any company with financial assets on their books, i.e derivatives, will become insolvent. People will be fired, demand for welfare goes ape ****, deficit increases, everyone wants social revolution, I advocate for an economic socialist union between major european countries, and we eventually build a better economic system coupled with a better society. Can't go wrong there.

    How are banks better capitalized? They are teetering on the ledge of doom. They will carry out bail ins which will anger middle and upper classes. Tighten money supply. Great depression baby!
    Not really. While it's true that we want house prices to increase and government intervening in the credit market is enhancing this right now (because banks have none of the risk from guaranteed mortgages from the government), it's quite plausable that we could simply constrain lending to a level where house price growth is reasonable. Between 2010-2012 the banks reduced mortgage lending to levels last seen in the 70's and the result was that outside London affordability actually increased (before you take into account deposit size) because stagnant wages were still beating falling house prices. It's plausible that we could decrease leverage ratio's (something proposed - 4.5 times income) such that house price growth is in the low single digits (near enough wages). One can support regulation rather than a repeat of the last business cycle. Japan has also not seen such a housing bubble for the most part.

    Possible but too pessimistic if you ask me. Your also ignoring market interventions to address some of those issues.

    Because most of the bad debt they had has already been written off and there's been pressure for them to hold more money. Hence the stress tests. I'm not saying they'll be fine, i'm just saying they can probably whether the same crisis as last time.
    Offline

    3
    ReputationRep:
    (Original post by illegaltobepoor)
    I've put up a new thread with a even better video. Will show you why we live in a Banna Republic and will flip your whole world view upside down.

    http://www.thestudentroom.co.uk/show....php?t=3075041
    Yeah ive heard alot about what you just said in the thread, ill watch the vid now.
    Thanks for the interesting thread.
    • Political Ambassador
    Online

    21
    ReputationRep:
    Political Ambassador
    (Original post by Zenarthra)
    I think you have confused the two concepts or rich and wealthy.
    They are not equivalent.
    If you are really interested in why the vast majority of individuals will NEVER become rich, watch here.
    I never claimed they were equivalent, and I've seen that video several times before and IIRC it is hardly without fault.
    Offline

    8
    ReputationRep:
    (Original post by Rakas21)
    Possible but too pessimistic if you ask me. Your also ignoring market interventions to address some of those issues.
    Policies devised to deal with the 07/08 financial collapse are derived from monetarists. In the Great Depression, banks were allowed to collapse and the money supply was allowed to shrink. Access to credit was rare. The FED couldn't intervene aka bailout the banks since they had a limit on the credit they could issue (gold backed). Other policies worsened the crisis but essentially limited money supply prolonged the recession/depression.

    Now people like Ben Bernanke came up with the bailout system to deal with a financial collapse of that magnitude. So this is all an experiment. They have no idea what will happen. I presume that austerity is a controlled depression targeting the public and effecting the poorest in society. However, I believe this will extend to the so called middle class as they are beneficiaries of social welfare and are not quite the upper class elites they long to be which will result in a radical change in the political atmosphere. The government can't expect to get a budget surplus without a decrease in the standard of living of a significant proportion of the population.

    So we will see what happens next. Liquidating rubbish assets can only go on for so long. There will be some give somewhere. War or political change will cause it. It is necessary for these valueless assets to disappear and for those that become insolvent to disappear like they should. If this means all the banks in the world disappear it means that a new socialist bank can take its place.

    (Original post by Rakas21)
    Because most of the bad debt they had has already been written off and there's been pressure for them to hold more money. Hence the stress tests. I'm not saying they'll be fine, i'm just saying they can probably whether the same crisis as last time.
    No it hasn't. The government bought the bad assets which are worth nothing for 700 billion or something. I can't remember. The assets on the balance sheets of banks are still dodgy...They will be revalued and thats the end of the bank.
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    Has a teacher ever helped you cheat?
    Useful resources

    Groups associated with this forum:

    View associated groups
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Write a reply...
    Reply
    Hide
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.