mootmoot
  • Member for 5 years, 2 months
  • Last seen more than 1 year ago
Does stock picking work?
3 votes

I think this Quora discussion on the fund manager illusion of validity told most of the story. As one commenter has pointed out the flaw of typical fund manager attempt to use Berhshire Hathaway to ...

View answer
Venezuela Petro Cryptocurrency
2 votes

Cryptocurrency is never a good medium of trade exchange compare to printed notes. Anyone follows the history and trend of cryptocurrency can tell you that, cryptocurrency has become speculative ...

View answer
Why are different currencies able to purchase different amounts?
2 votes

The eggs vs relative income is a common economy thesis for production efficiency , market efficiency, good institutional control and low income in-equality. I wouldn't call this as "free market", as ...

View answer
Why the prices for very popular items do not increase?
2 votes

Some online-shop does practice price discrimination. However, the seller must play the price game carefully to maximize their profits: Lower price means lower profit per units but may increase ...

View answer
Is a shrinking money supply environment painful for an economy?
2 votes

The closes answer will be country with extremely low inflation such as Nordic countries, Kuwait, Brunei. But they are not a good example, as the money supply are "balance" with their heavy surplus ...

View answer
What stops a government in partnership with its central bank from lowering interest rates and then borrowing at this lower rate to fund investments?
2 votes

Bank of England decided to lower reserve interest rates to 0.25%. This means the central bank wants to reduce the interest paid on reserved stash, discourage bankers parking too much money in central ...

View answer
Inflation , Housing Prices, Is there some form of the CPI that can include Home Prices?
Accepted answer
1 votes

You may correlate between household debt and rising home price, but correlation does not denote causation. In the scenario of property bubbles, Banks allow over-leverage with all sort of facilities ...

View answer
Does my research prove market inefficiency?
1 votes

The latest Freakonomics podcast topic Stupidest money may shed some light. I just quote part of the conversation from John Bogle: The markets are highly efficient — although, importantly, not ...

View answer
Insect farming as future of protein nutrition: reality check
1 votes

Currently, the problem lies in the genetic selection to make insects suitable for mass processing. Let's compare this to chicken farming Human society already select chicken that will grow lots of ...

View answer
Is falling inflation in India one of the reasons for the Nifty crossing the 10,000 points mark?
1 votes

Back to economy basic 101: Inflation is due to excessive cash chasing limited goods. So to relieve monetary inflation, an institution can only do either or all of this: Slow down money printing ...

View answer
Basic Reason of Why the Money Supply Needs to Increase?
1 votes

Just to complement @Kanak answer. The major roles of finance industries are providing financing facilities, instead of involving in the creation of various speculative derivatives and masquerade them ...

View answer
How do I calculate the cost per usage of a machine?
1 votes

For plain accounting purpose, @bobu5678 is a common practice. If your intention is to justify something like Return On Investment(ROI), then this can be pretty tricky. E.g. Maintenance cost, e.g. ...

View answer
Tax by inflation
1 votes

Any government that removed the backing on the currency will turn the currency into commodities. From there on, the currency will take the path of any commodities. Unless the state expenses bring ...

View answer
What's good about both exports and imports of a country rising at the same time?
1 votes

A rise in import and export can mean anything. For example, places like Hong Kong and Singapore, have extremely high import/export rate. Both both places are merely transit hub for neighbourhood area. ...

View answer
What gives value to precious, luxury things?
1 votes

Only a surplus on demands will make things "valuable". So it is about the price level accepted by those who demands it, and the demands can be from essential needs to status show-off. If you read ...

View answer
Amazon vs Netflix, closely resembles which type of competition?
1 votes

Amazon cloud platform(AWS) is Amazon real cash cow, publishing contents is anything but just leveraging its advantages on cloud usage and contents distribution. On the other hand, Netflix started as ...

View answer
Profit maximisation and cost minimization
1 votes

There is no direct relationship between profit maximisation and cost reduction. A monopoly can set the profit as high when there is no competition, with little caring of the cost. In addition, ...

View answer
Deficit: can be seen as a return?
1 votes

What you trying to say is similar to this X earn $10,000 , bank loan of $5,000, thus debt to earning = 50% Y earn $100,000 , bank loan of $50,000, thus debt to earning = 50% because the debt to ...

View answer
What factors allow manufacturing to succeed in a developed country?
1 votes

China is a an exceptional case. China is the world biggest manufacturing hub. This mean all the upstream and downstream material can be found there. Any other country attempt to "race to the bottom" ...

View answer
Alternatives to avoid sanctions
0 votes

You should check the German wikipage on Instex (use a translator to read them). Here is the short translation on the purpose of Instex. Instex was initiated in January 2019 as a special purpose ...

View answer
How is it possible that all currency exchange rates are fixed w.r.t. to each other?
0 votes

Exchange rates are NOT fix. It is volatile to the supply-demands during the trade. The stability is artificially buffered by various country policy maker stack of cache for each currency they hold. ...

View answer
Can game theory be used to predict economic specialization (division of labor)?
0 votes

The matrix table show is just a part of Game theory tool set. The matrix only can be proven with granular heuristic rules. Adams Smith claim of specialization is describing a generic context. ...

View answer
Why are countries in the Gulf rich but lagging in technological innovation?
0 votes

Oil-rich country "resource curse" is merely symptoms, not the root cause of the poor R&D. It is a fallacy once you inspect the fact: US, Russia are both oil-rich country. Technologies ...

View answer
Does an instant settlement system (such as blockchains) eliminate the possibility for short selling?
0 votes

I think you are looking at the wrong direction. Short selling only happens when agents in between guaranteed to be paid, where the commodity values are within a controllable margin. 1 Bitcoins can ...

View answer
Why there are no famous software/IT companies in Europe? (unlike USA)
Accepted answer
0 votes

The question should rephrase to "Why Europe IT companies are not as prominent as USA IT companies"? Do you think Bosch is a IT company(when they supply software to VW)? European capital model and ...

View answer
Reductionism, value and market economics
0 votes

Currently, the practice of economics is similar to weather broadcast: there is many technical limitations that you must overcome and choose the best tradeoff. It is possible to put intangible value ...

View answer
People pathologically hoard so much cash that they impoverish the entire nation
0 votes

It is difficult to what exposure that lead Lester B. Pearson giving out such statement, the quote itself is a metaphor. "people pathologically hoard so much cash that they impoverish the entire ...

View answer
Why isn't the cost of shoes affected by their size?
0 votes

In fact, fixing price for goods is never straightforward. @Sane argue that this can be a logistic problem. However, there is always practice that says otherwise, e.g. stock clearance, discount. ...

View answer
Creating a currency
0 votes

In fact, currency doesn't need to be "approved" by any government. In fact, currency is just a trade medium, in some scenario, it becomes commodities, viable for speculation. A game like "Monopoly" ...

View answer
How does inflation work in real life?
0 votes

Actual inflation is about chain of effects, depends on the magnitude of money entering the market and how fast it is consumed by goods and services, according to the price accepted by the market, it ...

View answer