Deficit/Debt Discussion Thread

[Vanguard]

Clearly not.

[KrazyHorse]

dp

[KrazyHorse]

This is like talking to a 2year-old. Why not call equities money too?

****.

[MikeH]

I was assuming you were being serious. There difference between an asset being liquid and an asset being money.

Bank balances are money because they represent a promise to convert to dollars on demand. UStreasuries are not redeemable at face value until they mature. There is a liquid market in them, but the price can fluctuate significantly. For example, 30 ye notes appreciated 35% in one month at the end of 2008.

Ok that makes sense. Thank you!

[Vanguard]

This is like talking to a 2year-old. Why not call equities money too?

****.

I did not say any liquid asset was money. That is a straw man you invented. Don't expect me to reply to it.

[MikeH]

I thought his explanation was good, basically treasury notes aren't money in the same way houses aren't money. Which doesn't mean they don't both have value.

You can't pay for your coffee with part of a treasury note or a percentage of your house. You can pay with it with cash or a transfer of bank money from your account with a cheque/card or whatever.

[KrazyHorse]

I did not say any liquid asset was money. That is a straw man you invented. Don't expect me to reply to it.

If it's a strawman then you should be able to explain what your actual definition is, you twit. I already gave mine 20 posts ago.

[DaShi]

I've missed KH. Glad to him posting more regularly again. If only zakudl was here.

[Drake Tungsten]

Not understanding the effect of different coupon rates on computed yield in an environment with a strongly sloped yield curve.

I just got pwned.

[Japher]

Bonds are stupid.

[Drake Tungsten]

I agree. Bond math was by far my least favorite part of finance classes.

[Japher]

It makes sense when you think about it, but I'd much rather not.

[KrazyHorse]

Straight bonds are dumb. Bond derivatives are much more interesting. But good intuition on bond math is a prerequisite to understanding them.

[chequita guevara]

Calling all liquid assets money makes the term useless.

Things that have been used as money: cows, rice, barley, cowrie shells, iron bars, stone wheels, etc. Money is a commodity whose use-value is to be exchanged (although some forms of money also have other use-values).

If something can be used as money, it is money.

[Drake Tungsten]

Jesus che, why do you feel the need to advertise your retardation?