The Stock Markets and the Banks

[oldbadger]

Covid 19 has certainly come out of nowhere and wrecked a number of industries( e.g airlines, hospitality).

...and more.
And it look like it's wrecking many institutions as well..... Education is taking a battering just now.
In an Oppression the obituaries are going to be wide ranging.
Nobody knows or has any clues ........... imo.

However there is no reason to think it is going to cause banks and stock markets to become obsolete as the main way enterprises are funded, so far as I can see. You still need a way to put people with money to lend (savers) in touch with people who need to borrow money to grow and run a business. And that will be via banks and stock markets, mainly. Covid 19 doesn't change that.

Banks and Markets won't end........ they'll just change, and that's going to be rather traumatic for those who are deeply in to them, I reckon.
The only best guess just now is .......... spread out....... and that is spread funds out and around.

I don't believe increased use of the internet does so either. You may get some more lending via informal channels for small sums, but for serious amounts people need a professionally regulated system they can trust.

Tell that to retail.b
And who knows how T will change other services and institutions?

Worse still........ we don't know enough about IT security yet. Hopeless at it. All very dodgy!

 

[oldbadger]

I'm #1400+something, so June or July 2021 looks very likely.
I'm patient, & believe that Helix management is doing a stellar
job in coping with an unexpectedly difficult start-up.
It pains me to say something so positive about Canuckistanians.

Fair enough.
I hope all goes well with Helix and your order.
The question was genuine..... I'm in to folding bikes.

 

[SomeRandom]

These don't have the strings attached that stock market investors come with. It's people based, not business and profit based.
And, btw, they make these awesome little nifty devices that will automatically count your money. I don't even count it by hand unless I'm at the store.

Whoa. You Americans still use cash? I haven’t handled money in literally years. It’s all on “tap and go” cards these days.

 

[sun rise]

There was no evidence fuedalism and the absolute authority of the monarchy would be replaced. Then it would. There was no evidence at one point we'd have massive store closings that would take out some of the oldest and biggest companies.
But society is changing, and the internet is changing business, it's changing how we ask for and give money.

I agree that there are deep rooted structural changes afoot. I'm not predicting how they'll manifest.

 

[Revoltingest]

Fair enough.
I hope all goes well with Helix and your order.
The question was genuine..... I'm in to folding bikes.

They have an interesting strategy....some loathe it as unfair, but I
see it as benefiting us early buyers. Every few months, they sell
a bunch'o bikes to new buyers at full retail price. (I paid half price.)
They get ahead of us, but the cash flow enables buying more
machinery for production, making it faster & better. I'll wager
that this speeds things up for me, & gets me a better product.
Also, let the early buyers deal with start-up bugs. I'll get a more
refined product by waiting.

 

[sun rise]

Whoa. You Americans still use cash? I haven’t handled money in literally years. It’s all on “tap and go” cards these days.

My plastic does not 'tap'. I don't know why.

 

[Revoltingest]

Whoa. You Americans still use cash? I haven’t handled money in literally years. It’s all on “tap and go” cards these days.

I like cash. It's anonymous. The federal government has
been disincentivizing it, & even prosecuting people for using
it legally (calling the crime "structuring). Electronic transactions
are all vulnerable to government surveillance.

 

[Revoltingest]

My plastic does not 'tap'. I don't know why.

Perhaps you hold it incorrectly in your paw.

 

[sun rise]

Banks and Markets won't end........ they'll just change, and that's going to be rather traumatic for those who are deeply in to them, I reckon.
The only best guess just now is .......... spread out....... and that is spread funds out and around.

Diversity is good. I've got a few gold coins in a safety deposit box along with a bit of silver. Add to that stocks, mutual funds, bonds, bank accounts etc and we'll still be eating as long as everything does not turn to slime.

Worse still........ we don't know enough about IT security yet. Hopeless at it. All very dodgy!

Sure we know what to do but don't have the will to do it. Back in the late 1990's, I think, the statement of how to do security was articulated: "The only truly secure system is one that is powered off, cast in a block of concrete and sealed in a lead-lined room with armed guards - and even then I have my doubts."

 

[SomeRandom]

I like cash. It's anonymous. The federal government has
been disincentivizing it, & even prosecuting people for using
it legally (calling the crime "structuring). Electronic transactions
are all vulnerable to government surveillance.

Well your government is certainly authoritarian sounding.
Recently ours has encouraged using cash as little as possible due to COVID

 

[sun rise]

I like cash. It's anonymous. The federal government has
been disincentivizing it, & even prosecuting people for using
it legally (calling the crime "structuring). Electronic transactions
are all vulnerable to government surveillance.

But do you have certificates that are redeemable in "lawful money" at a Federal Reserve Bank? I have one of those.

 

[Revoltingest]

Well your government is certainly authoritarian sounding.

You got dat right.
Also, if the cops catch you with lots'o cash, they can do
what's called "civil forfeiture", which is to take your money,
& keep it until you can prove to their satisfaction that you got
it legally. This is typically a very expensive process in court.
Cops get to keep all such money for use by their department
by default. Of course, this makes it popular...with cops.

 

[SomeRandom]

My plastic does not 'tap'. I don't know why.

Have you tried turning it off and on again?

 

[Revoltingest]

But do you have certificates that are redeemable in "lawful money" at a Federal Reserve Bank? I have one of those.

I don't need money that's redeemable for money at special banks.
I like Benjamins.

 

[SomeRandom]

You got dat right.
Also, if the cops catch you with lots'o cash, they can do
what's called "civil forfeiture", which is to take your money,
& keep it until you can prove to their satisfaction that you got
it legally. This is typically a very expensive process in court.
Cops get to keep all such money for use by their department
by default. Of course, this makes it popular...with cops.

 

[OtherSheep]

Can we live without them?
So they can claim more revenue to gain power for themselves?

Gift cards. Vanilla Credit Cards. Big old bag o'pennies.
They all beat the jab in the eye with a sharp stick that you get at the bank.

 

[sun rise]

Have you tried turning it off and on again?

My credit card does not have an on/off switch

 

[sun rise]

I don't need money that's redeemable for money at special banks.
I like Benjamins.

With only a rare tiny exception, the only time I use cash is at the Farmer's market. I'd rather they get to keep everything I give them rather than have the credit processing company suck some of their profits away in fees.

I don't feel that way when it comes to corporations I buy things from.

One time I bargained a bit. There was something I was buying that cost $102. I said that I'd pay $100 cash and they would not get charged whatever the bank took, call it 4%. So $100 cash or $98 after the bank took theirs off the top. I saved call it $2 and so did the business I was buying from.

 

[SomeRandom]

My credit card does not have an on/off switch

I know I was just kidding.
If only we could switch it off though. Might save on some shopping bills.

 

[oldbadger]

They have an interesting strategy....some loathe it as unfair, but I
see it as benefiting us early buyers. Every few months, they sell
a bunch'o bikes to new buyers at full retail price. (I paid half price.)
They get ahead of us, but the cash flow enables buying more
machinery for production, making it faster & better. I'll wager
that this speeds things up for me, & gets me a better product.
Also, let the early buyers deal with start-up bugs. I'll get a more
refined product by waiting.

OK......
As long as you and the earlier 1/2 price customers are happy, then that's fine.

At my age I am a member of the 'wannit-now!' mob..... tend to live for today. A friend of mine wanted a new Morgan sports car (back in the early 80's), he paid a large deposit with his order and then had to wait years before the car was ready for him to collect and pay up for. Many folks would offer new owners very large profits if they would immediately sell their Morgans on receipt.

Until this year Rolex watches had a long waiting list for certain models and would withhold certificates and docs from new owners for one year to try and cut down on the 'immediate resale market'. They've been stopped from doing that now by some Civil Court cases.

So the 'deposit and wait' market exists in many forms.