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  • On 27 Jan 2013 in The Dangers of Taurine, Commonly Found in Energy Drinks, uomo_senza_nome said:

    curious2 says

    One thing I don't understand about American retail: the juice aisle contains dozens of juices "from concentrate" but you can't buy the concentrate.

    If you want healthy food, you have to pay the price in America.

    Follow that as the premise and you can understand everything.

    The "from concentrate" stuff uses less concentrate and more cheap crap added into it and therefore sold at a lower cost.

  • On 24 Jan 2013 in Will the real estate trend continue in 2013?, uomo_senza_nome said:

    tatupu70 says

    Lower rates will allow riskier activity to take place, but it shouldn't cause a misallocation of resources

    From the same link that I just posted:

    The 'hot money' seeks beta, and that means financial paper, and frauds like collateralized debt obligations, tied to whatever hapless aspect of the real economy that is convenient, such as housing for example.

    So yes, you are right. lower interest rates would encourage riskier activity that wouldn't have been taken otherwise. Who knows if this riskier activity is actually productive?

    Well, we can figure out if it is likely to be productive or not, by ensuring that the firm which takes on the risk is actually punished for taking such a risk in case the venture fails. What happens in the current economy? Risk is always socialized, Finance is rent seeking through seignorage.

  • On 24 Jan 2013 in Will the real estate trend continue in 2013?, uomo_senza_nome said:

    David Losh says

    If you borrow a million dollars you owe a million dollars. It makes no difference how low the interest is, you have to pay the money back.

    To add on to what swebb says, interest rate is the price of money. If interest rates are artificially low, then some activity can take place (even if it is totally unproductive to the real economy) which would not happen otherwise. So it does cause misallocation of resources.

    Interest rate is a very important signal, but what we have today is market manipulation because the Fed is engaging in open-ended QE.

    Monetary inflation without reform is the 'solution' that most favors the monied interests and the financial class given the extractive nature of the system as it is.

    http://jessescrossroadscafe.blogspot.com/2013/01/bernankes-hammer-when-everything-looks.html

  • On 24 Jan 2013 in Goran: Joining the debt slaves?, uomo_senza_nome said:

    I fully understand what you say below:

    Goran_K says

    How long should one wait for things to return to the "old normal"? 3 years? 5 years? 20 years? By that time, I'd be an old man, and my kids would be teenagers by then, nearly ready to leave for college.

    Goran_K says

    I never could tell, but are you on the renter or homeowner (bear/bull) side of the battle?

    Owner, but only because it makes sense. If you read Patrick's site enough, you get around to thinking that even owning is basically renting but ensuring that you minimize your losses :)

  • On 23 Jan 2013 in Goran: Joining the debt slaves?, uomo_senza_nome said:

    Goran -

    If your purchase is all cash, you're not really a debt slave, right? :)

    Anyway, Congrats - hope everything goes smoothly.

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