Financial Securities - Why They Matter

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Financial Securities - Why They Matter

Postby origami » Wed Jun 29, 2022 9:30 pm

A financial security is any publicly available instrument of investment. That sounds complicated but it isn't. It includes stocks, like Apple or Caterpillar, commodities, like oil or live cattle, bonds (bonds are papers containing terms of a loan, payable to the holder) like US treasury bonds or bonds issued by a company, and derivatives of these, such as a paper issued by a company committing that company to buy a stock from the holder of the paper some time in the future at an agreed upon price, known as a futures contract.

The prices of all of these go up and down as people try to buy and sell them at the best price they can get. They can buy them in their own names, in the name of a company, or, crucially, in the name of a financial institution, such as a bank or a pension fund.

Most people will consider that these prices only affect the very rich, who directly buy or sell these securities, and that it is not a problem of other people. This is not so.

When you deposit money in a bank, or in a pension fund, there is a problem. In the future, the world will have grown and more people will be buying and selling more things, and the prices of things will have gone up. This means that if they just leave the money in a vault and wait until you get it out, it will be worth considerably less once you do. For this purpose, you could just as well bury your money in an vault buried in your garden, and it would be almost as safe as in a bank. The purpose of a bank or a pension fund is to use the money you give them to buy securities (they can also use it to give out loans, but this is a kind of security, it is buying a promis from the person you are lending money to that they will pay you a greater amount back in the future), so that when you go to take out your money, it can buy you at least as much as it would have bought you at the time when you deposited it, or if not, as close as possible.

So when you are depositing your money in a bank, or a pension fund, you are engaging the services of the bank or pension fund to buy securities in your name, so that when you retreive your deposit, it will be a larger amount of dollars than when you deposited it.

If there is a crash in the securities market, such as there is now, it is not only the rich that lose money, but anybody that has an account with a bank or a pension fund. This means that the things that go on in the world of business, such as the hike in oil prices, affect your money directly, because expensive oil means it will be much harder for the companies you are invested in to make money, and they will inevitably make less.

If your politicians are conducting policies that negatively affect the securities market, the world of business, then it may be the case that they are achieving some goal, like destroying Russia or reducing the amount of carbon in the Earth's atmosphere. Buty it is definitely the case that they are causing you to have less money.

When the world of business is negatively affected by these policies, it is not only the rich that are affected and lose money, but everybody else, including yourself. You will have to pay a dollar price for these policies. In many cases, the very very rich will benefit, because they are in privileged positions with the government that conducts these policies.
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Re: Financial Securities - Why They Matter

Postby Mr Reasonable » Thu Jun 30, 2022 8:38 am

smart money right now is holding cash and waiting for big dips. i've got a big chunk of an income fund that holds bonds from australia and emerging markets in southeast asia, as well as an s&p index fund that i buy in regular intervals, but i adjust the contribution depending on where the market is short term. i've got chunks in 2 mutual funds from dynatech and franklin and if you add them all up i have a chunk of cash in an envelope in a deposit box at a bank branch that's about as much or maybe more than my holdings in all those. then i play with the meme stocks and the coins on robin hood while i'm taking shits or watching tv, and i get tips from a broker friend for things i have no intention of holding forever but that i may need to hold for more than a day, and i trade those actively in ameritrade because you can trade anything there so i may pick up a chunk of this or that and drop it on over a short term usually less than 6 months but the whole game is capital appreciation so that i can keep feeding the longer terms stuff. i like to think that all this stuff is common sense but i'm not sure that it is.
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Re: Financial Securities - Why They Matter

Postby origami » Thu Jun 30, 2022 10:42 am

Mr Reasonable wrote:smart money right now is holding cash and waiting for big dips.


This element of your strategy is what is the point at the moment. You can be Warren Buffet, and are unlikely to be making money right now. Of course, anybody that followed my advice at the top of the collapse, the very top, has by now possibly doubled their capital. But that is neither here nor there.

The point is that a bank, or an investment firm that works with serious capital, like a pension fund, cannot afford to do some fancy specialized trading like this. It is too large of a volume of capital, first, and too much of a responsibility to too many people to take wild swings or take constantly shifting short positions. Their money is, in essence, wherever the market in general is. Because we are humans and entrpreneurs and generally have a lot of up and at them and a lot of thirst, markets have a tendency to just grow. Some win, some lose, but the business world in general grows.

Except when the government wages war on oil.

Except when the government wages war on business.

When they wage war on business, they are waging it on the guy that sweeps the floors as much as the CEO. They are hampering the ability of money to be made.
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Re: Financial Securities - Why They Matter

Postby origami » Thu Jun 30, 2022 10:45 am

If somebody tells you that the war on Russia may or may not be saving the world but is having no effect on you, they are lying to your face, or idiots. Because $120 for something that takes maybe $10 to get out of the ground is a travesty. So Saudi Arabia and the big oil nations form OPEC and jack up the prices. $60, that's fair, starving nations that find a source of income. So the fanatic lunatic leftists decide they want to erase Russia. For heaven's sake. $120. Nobody can make money.
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Re: Financial Securities - Why They Matter

Postby origami » Thu Jun 30, 2022 4:08 pm

Oil taking a dive now. Maybe God heard my prayers.

Or maybe the recession is so bad now that even the sanctions can't prop up prices.
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Re: Financial Securities - Why They Matter

Postby Mr Reasonable » Fri Jul 01, 2022 1:10 am

origami wrote:Oil taking a dive now. Maybe God heard my prayers.

Or maybe the recession is so bad now that even the sanctions can't prop up prices.



its the wv v epa case. they'll bring it back up to what the market will tolerate while advocating against investment in a diversity of energy sources.
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 2:03 am

Are you crazy? The EPA case? Are you back on the reefer?

By the way, mein friend, big oil is already heavily invested in "a diversity of energy osurces." Because all of them are bullshit new age mumbo jumbo, they are costing them a dime and a half and themselves jacking up the price of oil.

The EPA case. The balls on you.

You think some guy just sits in a desk and decides the prices? That is an actual factual consumer of oil willing to pay that much, because the amount of people selling oil is now greatly reduced. Russia is, to put it in perspective, essencially as big a part of the world's oil supply as Saudi Arabia.
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 2:05 am

They'll bring the prices back up.

You live in legoland.

The movement of oil is now almost perfectly mirroring the movement in the S and P. What that means is tht I was right about option #2, and the recession is hitting people so bad that they are just having to sell whatever they have, inclzzuding the oil.
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 2:07 am

By the way, yesterday was the worst 52 week average price collapse for the S and P since 1970.

I hope you're enjoying your fucking solar panels and ninja masks.

It's like you had a lobotomy but they replaced the empty parts with cotton candy. What is wrong with you?
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 2:09 am

Just think about it in your brain dude.

If it is some random guy arbitrarily deciding prices to fool the poor people so they can win the EPA case, how did I know it would happen IN JANUARY?

Maybe I'm the guy setting the prices? Like George Clooney in that movie, the backdoorman that they hire?
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 2:39 am

This is an email I got today from Air Canada.

Dear XXXXX,

At Air Canada, we know how important travel plans are. This is even more the case today when many are taking their first trip in years following the pandemic. Whether for long‑anticipated vacations, visits with relatives and friends, or for business, we are grateful and recognize our responsibility when people like you entrust your travel to our airline.

Regrettably, things are not business as usual in our industry globally, and this is affecting our operations and our ability to serve you with our normal standards of care. The COVID‑19 pandemic brought the world air transport system to a halt in early 2020. Now, after more than two years, global travel is resurgent, and people are returning to flying at a rate never seen in our industry.

This surge in travel has created unprecedented and unforeseen strains on all aspects of the global aviation system. Around the world, there are recurring incidents of flight delays and airport congestion, resulting from a complex array of persistent factors impacting airlines and our partners in the aviation ecosystem. Similar effects are being seen in other industries too, where companies and suppliers are struggling to restart, unclog supply chains and meet pent‑up demand.

At Air Canada, we anticipated many of these factors and began taking tangible action during the depth of the pandemic to be ready for a rapid restart. Yet, despite detailed and careful planning, the largest and fastest scale of hiring in our history, as well as investments in aircraft and equipment, it is now clear that Air Canada’s operations too have been disrupted by the industry’s complex and unavoidable challenges. The result has been flight cancellations and customer service shortfalls on our part that we would never have intended for our customers or for our employees, and for which we sincerely apologize.

In response, we took a number of important steps, including introducing flexible ticket policies, new travel self-management tools, improvements to airport operations, as well adjustments to our schedule ‑ all to strengthen operational resiliency and to give customers more options. However, to bring about the level of operational stability we need, with reluctance, we are now making meaningful reductions to our schedule in July and August in order to reduce passenger volumes and flows to a level we believe the air transport system can accommodate.

This was not an easy decision, as it will result in additional flight cancellations that will have a negative impact on some customers. But doing this in advance allows affected customers to take time to make other arrangements in an orderly manner, rather than have their travel disrupted shortly before or during their journey, with few alternatives available. It will also enable us to more reliably serve all customers.

I can assure you Air Canada is also working in close cooperation with airports, government, and its third‑party service providers, who all are striving to return our industry to pre‑pandemic standards of operation.

We are convinced these changes will bring about the improvements we have targeted. But to set expectations, it should also be understood the real benefits of this action will take time and be felt only gradually as the industry regains the reliability and robustness it had attained prior to the pandemic.

On behalf of all of us at Air Canada, please accept my sincere apologies for any disruption you have experienced or may experience with your travel plans during this unprecedented period. I also assure you that we very clearly see the challenges at hand, that we are taking action, and that we are confident we have the strategy to address them. This is our company’s chief focus at every level.

Thank you for your patience and understanding. We certainly look forward to future opportunities to serve you and regain your loyalty at a time when we can better demonstrate our commitment to taking good care of customers such as yourself.

Sincerely,

Michael Rousseau
President and Chief Executive Officer
Air Canada


Did the EPA case do that? You nut?
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 2:47 am

By the way, have you read some of the briefs for the EPA case?

It's insanity what these communists want to do.

What happened with you? That along the way you forgot the meaning of shame?
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 2:48 am

Thankfully, sane people are back in charge. I doubt the Supreme Court will allow that monstruosity to pass.
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Re: Financial Securities - Why They Matter

Postby Mr Reasonable » Fri Jul 01, 2022 3:19 am

look at how crazy it made you for me to suggest that people should work on alternative forms of energy
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 3:21 am

It is certainly admirable how calm you are in the face of a collapse not seen since 1970.
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Re: Financial Securities - Why They Matter

Postby Mr Reasonable » Fri Jul 01, 2022 3:24 am

i'll be fine
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 3:24 am

I guess you'll wait for CNN to cue when you should start becoming outraged. They'll have picked an appropriate fall guy by then.
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Re: Financial Securities - Why They Matter

Postby Mr Reasonable » Fri Jul 01, 2022 3:25 am

i dont even have cable
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 3:25 am

I see. They implanted the chip already?
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Re: Financial Securities - Why They Matter

Postby Mr Reasonable » Fri Jul 01, 2022 3:27 am

yeah man implanted chips. totally. that's what happened
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 3:28 am

It's a metaphorical chip.
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 3:29 am

What ar your feelings on that big oil is the main thing propping up investment for "alternative energy?"
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 3:31 am

Free government money. You think big oil will pass up on that?

Forms of "energy" that are so "energy efficient" that they cannot make money, so the government pays companies to implement them.
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 3:33 am

Speak up son, we can't hear you.
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Re: Financial Securities - Why They Matter

Postby origami » Fri Jul 01, 2022 3:35 am

Pitiful.
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