I no longer believe in capitalism. At all.

[Ben Kenobi]

Were I in a position to pay down my debt, I certainly would. I used to keep no balance from month to month, but then (3 years ago) my employer cut hours due to the **** economy and then fired me just before Christmas. This had a... uh... negative impact on my asset levels. I still haven't recovered, due in no small part to my own stupid choices.

I'm still under where I was back in 2008 before my father passed on. I got let go in December of 2008. Part of the reason I left Canada is because I had no luck finding anything up north, and if I was going to move I preferred to move to Texas. Doing ok now - but it's a long slog.

I hope things turn around for everybody - especially folks like you Lorizael. There's lots of young folks who were working great jobs before the Great Recession who haven't gotten back yet to where they were.

You mind if I pray for you Lori?

[Hauldren Collider]

Are you hoarding cash, or are you virtuously investing it?

It's in an index fund.

But there's nothing wrong with hoarding cash either. It's basically giving things to society for free, isn't it?

[Jaguar]

We're all in this together. Always has been that way, always will be. I just thank the Lord that I'm in it with other Americans.

[Lorizael]

I'm still under where I was back in 2008 before my father passed on. I got let go in December of 2008. Part of the reason I left Canada is because I had no luck finding anything up north, and if I was going to move I preferred to move to Texas. Doing ok now - but it's a long slog.

I hope things turn around for everybody - especially folks like you Lorizael. There's lots of young folks who were working great jobs before the Great Recession who haven't gotten back yet to where they were.

You mind if I pray for you Lori?

You can do whatever you'd like, but there are people in far more need of prayer (or concretely beneficial things) than me. I have a car, a job, a girlfriend, a house my girlfriend just bought, plenty of food, internet access, access to schooling, very little risk of violent death, etc. I may be poorer than most 20-something white guys in Montgomery County, MD, but I'm doing just fine as far as the rest of the world is concerned.

[Jaguar]

It's in an index fund.

But there's nothing wrong with hoarding cash either. It's basically giving things to society for free, isn't it?

During a recession, hoarding cash is really really bad. Read this, or alternatively, let Kuci gush about Scott Sumner's blog to you. (The latter is much more time-consuming.)

Index funds, though, are virtuous.

[Kuciwalker]

We're all in this together. Always has been that way, always will be. I just thank the Lord that I'm in it with other Americans.

No you don't.

[Jaguar]

Yes I do. I am still on board with the plan of becoming religious just to troll you.

[Kuciwalker]

Pretty sure that's a sin.

[Hauldren Collider]

[Jaguar]

We are all sinners, Kuci.

[Ben Kenobi]

During a recession, hoarding cash is really really bad. Read this, or alternatively, let Kuci gush about Scott Sumner's blog to you. (The latter is much more time-consuming.)

Couple things here. One, I get paid by other people to loan out my money to them (and to transfer my money to them), so that they can lend it out to other people. Two, I'm in a situation, where I am taking money out of one place and putting it into another place longterm. Thus, as I get paid in CDN - and continually transfer to USD, I am putting money into the American economy that wasn't available to them previously.

Three - I'm also liquid. I can, if I choose to jump right back in. I'm not committed to any one place or time where to put my money. Why am I not investing? Or as in your example, why am I not going out and using the scrip?

If I believe the scrip will get more valuable over time - does that not take away the incentive to use them? If they do a 2:1 split, I've just rewarded the people who held scrip, because their scrip is now twice as valuable as previous. I can buy more stuff by waiting. It's like buying winter coats in july. I can get more coat for the cost of having to store the coat and having to delay gratification for 6 months.

[Ben Kenobi]

Yes I do. I am still on board with the plan of becoming religious just to troll you.

Great! You should become Catholic. Endless trolling opportunities.

[Jaguar]

Why am I not investing? Or as in your example, why am I not going out and using the scrip?

If I believe the scrip will get more valuable over time - does that not take away the incentive to use them? If they do a 2:1 split, I've just rewarded the people who held scrip, because their scrip is now twice as valuable as previous. I can buy more stuff by waiting. It's like buying winter coats in july. I can get more coat for the cost of having to store the coat and having to delay gratification for 6 months.

Your investment decision is the correct call if a deflationary recession comes. It's just also precisely the thing that causes deflationary recessions and slows recoveries. That's why I am shaming you.

[Ben Kenobi]

Your investment decision is the correct call if a deflationary recession comes. It's just also precisely the thing that causes deflationary recessions and slows recoveries. That's why I am shaming you.

Isn't it Adam Smith who defends rational self-interest?

[Jaguar]

Isn't it Adam Smith who defends rational self-interest?

A "government" of some sort decided the amount of scrip. The quantity of scrip supplied was wrong.

Once you have that problem, then there are actually all sorts of weird things that can happen, and Adam Smith's framework becomes wrong(!).