Well, thanks a lot Economics! Anyways, I was reading a book for my Ethics in Finance course, and I enjoyed reading it (no, im not being sarcastic). It wasn't a course book with dry dry dryyyyyyyyy material. This was just like a nonfictional informative funny-humorous take on the credit crunch/credit crisis that took place during 2007-2008. So why am I telling you this? Well, since I was talking about economics, the author mentions that economic theories only work in theory, not good for any practical sense anyways (how true!). And so are the formulas derived by the 'Quants' (as he puts it for Mathematicians) for econ. Basically, he's saying -in my own interpretation - Economics is simply bullshit!....well, that's what i'd like to say to finance too, and everything else in life. This can be another topic which can be discussed separately.
Anywhoooo....and the biggest sham of all formulas in econ I believe is the money supply formula.
This is how it works: Suppose you're the bank and I'm a consumer. I give you $100 as a deposit. Now, that money is ur liability to me (This is why you see debit and credit differently in your bank statement)...Anyways, now you as the bank want to make money off of that $100 that you just got from me (of course u wanna make $$$, right?)....so you keep $10 to yourself ('fractional reserve banking' its called.....i call it SHIT!)) and lend the $90 to someone else. Now, that person will go to some other bank, say Bank2 and deposit $90 there. Bank 2 keeps $10 and loans the $80 to someone else. So money has been created....ooo...aaaa...MAGIC!!!....100+90+80 = 270. (of that 270, 170 was created by the Banks)....Amazing eh? Just from that $100, banks have created 270 dollars..... AND IT CONTINUES....And this, ladies and gentlemen, how money is created. Amazing eh? (now im being sarcastic) TOTAL SHAM I SAY!....Money is not 'created'...it's just borrowed, loaned and used and borrowed used and loaned and so forth...The only time, I believe, when money is 'created' is when the govt prints money. Of course, that's not feasible all the times, since printing too much money leads to inflation....and yea...Economics is fun, i tell ya!!!...Actually, it can be pretty interesting, but at times, it's all the same freakin thing, SUPPLY AND DEMAND....SUPPLY AND DEMAND...SUPPLY AND DEMAND!!!!!....with an equilibrium, of course.....only if life had a balancing equilibrium.....**SIGH**
Back to studies, I suppose. Hello Economics. Oooo...it's my last exam for the semester :D hoooraaayyyy!!!!!!!!!!!!!.......
Yipppeee... :D :D :D I can finally sleep properly after my exam...given that these neighbors of mine stay quiet and not chuckle loudly!!!....Even I chuckle inside my head sometimes hearing one of the girl chuckle sooooooooooooo loudly in high pitch voice.... haaa haaaaa haaaaaaahhh!!! (laugh like this in a high pitch loudly....it'll sound hilarious :P)...lol....or as Iku Miku says: lolwa :D hehehe :)
I get to go home soon!!!!!!!!! :D :D :D :D :D :D :D Joy to my world, the day will come, let me reach home soooon.....joy to my world (joy to the world....i'm so in the Christmas spirit now! :D)
Oh here are some pictures I took of Downtown Toronto :D (with the shitty camera of my shitty cell phone....)...'Tis the jolly time of Christmas :D ....Dear Santa....(errrr....maybe in the next post).... :P lolwa :D
The most recent one I took in the morning...they added some reindeer and nutcrackers.....looks much better in the night tho... :-/
P.S. I just realized I made so many mistakes.....aghhh...i cant keep my eyes opened.....maybe I should just go and read for my final exam.....[Note: reading is different than reading and comprehending]....let me visually demonstrate what I mean:
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