.zero

★ ★ ★
Aug 8, 2006
82,928
i'm just pissed about being back at work - just letting off some steam ;)

i hate the project i'm on and am just frustrated that i haven't found a new one yet
 

Bjerknes

"Top Economist"
Mar 16, 2004
116,244
Andy please, quick question.

How can too big investments cause inflation and higher prices?
Well, if you look at it from a trading perspective, really big trades can move the market in a particular direction. If somebody buys a million shares of a company's stock it will most likely lead to a higher stock price in the future because somebody demanded them.

If you take a look at what the Federal Reserve, our central bank, is doing, they are throwing money at bad assets. The more money they print, the more supply of money exists, meaning that the value of those dollars decreases. It's just a matter of supply and demand.

If that's what the question is trying to get at...
 

Dostoevsky

Tzu
Administrator
May 27, 2007
89,026
Well, if you look at it from a trading perspective, really big trades can move the market in a particular direction. If somebody buys a million shares of a company's stock it will most likely lead to a higher stock price in the future because somebody demanded them.

If you take a look at what the Federal Reserve, our central bank, is doing, they are throwing money at bad assets. The more money they print, the more supply of money exists, meaning that the value of those dollars decreases. It's just a matter of supply and demand.

If that's what the question is trying to get at...
Um yea I think that'll do.

Thanks.
 

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