Distorted value or world gone mad?

Discussion in 'Current Affairs' started by harry_mr, Feb 7, 2020.

  1. harry_mr

    harry_mr Active Member

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    I would explain value as created or maintained by demand and scarcity, which is but a few of the characteristics Fiat money should exhibit, however I'm old school and today some things fit this description but leave me wondering is it me or has the world gone mad.
    We can have scarcity, but without demand it can be nothing.
    Behold I offer you a one off plastic toilet brush I own, in as new condition and original packaging $52 000USD, alternatively I offer you this pair of Nike shoes similar to those below, both are around $52,000 USD.
    https://www.farfetch.com/au/shoppin...PQzNmdbpkPOumpvwcg6QtherUxXeUhNEaAl_GEALw_wcB
    This should indicate something to the average half smart person.
    Got any other examples of world gone mad....
     
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  2. harry_mr

    harry_mr Active Member

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    Thanks for the like 66 rounds, its an observation I made based on several items I have seen rise in price that don't make sense. Stocks values could be used as an analysis however their price rise is easier to manipulate and explain than a pair of shoes especially when you have a government happy to see stock rise and wall street manipulators in collusion. Now discreet inflation is another thing, I have noticed the price for a 700ml (previously 750mL) bottle of Bundaberg Rum has gone from from under $30 to tonight at DM $38.95, the slow boiled frog doesn't notice the heat.
     
  3. 66rounds

    66rounds Well-Known Member Silver Stacker

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    When most people just tap to pay, the frog can boil a lot faster. Many times at checkout they dont even give me a total if i dont ask, and they shove the eftpos machine in my face then sigh when i bring out the cash. I highly doubt most of the population realize they are paying 10-20% more for everyday items compared to a couple years ago! It was only the start of last year that generic brand bread was $1 a loaf and milk $1 a litre, now im apparently paying the farmers that werent getting paid before and mother nature needs her plastic bag tax otherwise shell send another bushfire our way!
     
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  4. harry_mr

    harry_mr Active Member

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    $120,000 ono[​IMG]
     
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  5. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Doubt anyone would buy perishable art and likely a marketing ploy for works by the artist... if sold than it for some charity etc.
     
    Last edited: Feb 7, 2020
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  6. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    ‘can’t see an issue if the buyer can afford it.

    People spend tens of thousands to hundreds of thousands on handbags, clothes and on watches some spend millions.

    Besides who ever they are, they are either silly rich or likely savvy collectors, just like people pay silly money in rare art, coins or stamps, just because you (and me) think it is madness, doesn’t mean it is to others.
     
  7. harry_mr

    harry_mr Active Member

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    Yes Ipv6 more can can afford these things and that is
    Yes Ipv6 more people can afford these things and that fact is distortion which I think has been born from an excess supply of Fiat, its (not the only) reason why a pair of shoes can rise to $52K USD. I have no problem with what people spend their surplus funds as so long as they dont expect a handout or bailout if things turns sour in their life, but would I ever have thought a website site selling secondhand runners is a billion dollar business https://www.cnbc.com/2019/06/26/stockx-a-stock-exchange-for-sneakers-is-now-worth-1-billion.html
    I am old school but its more of an observation than condemning ones spending habit.
    BTW Im also intrigued that renting out Louis Vuitton handbags overnight is now a business, however is it a business or a distortion that could only be created under today monetary policies?
     
    Last edited: Feb 7, 2020
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  8. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    I think it’s just a clever use of resources that has been made possible because of the technology available to us.
     
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  9. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Even if IPv6 can afford but I doubt he will go for a $52000 shoes. These are for celebrities, socialites and people with inheritance and don’t need to work.
     
  10. sodl

    sodl Active Member

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  11. mrsilverservice

    mrsilverservice Well-Known Member

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    More like gone Banana/s :D
     
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  12. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Times change.... Some good some not so good

    my niece in early 2000 wanted to become a YouTuber for a long time, I smiled thought she is young and encouraged her to go to uni....she did grow out of it and become a lawyer... But if she asked me today, I would say it hard work but doable.

    I also think it is technology that has allowed for more people to get richer rather than fiat.
    30 years ago there was three ways to make money -> work Y hours and get $X, investment and there is inheritance but not relevant.

    Technology today has allowed many many people to work Y hours and get paid 10X, 20X or 100X dollars, multiples only owners, managers and ceos used to get paid.

    At the most simple level here are two examples....

    in the past if you owned a store selling widgets, you could only sell them 9 to 5 shop hours to your local customers..... Now you can sell 24/7 to every part of the world. Don’t have money to open a store... not an issue it cost $0 to start an eBay or amazon business and be open 24/7

    have no capitol but have expertise, skill or uniqueness that people “might want” become a blogger or youtuber on the side and earn little or a lot 24/7

    literally millions of people’s earn money on the web doing crazy, weird or silly things on YT/Facebook/instagram etc as far as I am concerned but out of 15,000,000,000 people if just 0.0000000001 was interested enough to watch than today they can earn money people 30 years wouldn’t have thought possible.

    Both examples require hard work but the rewards are they pay you 24/7 without working 24/7
     
  13. harry_mr

    harry_mr Active Member

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    I have no problem with the technology usage, but whether that has been a big factor in distorted the value that people are seeing in some of these products they are peddling, Ill have to wait and see. Price being relative only to a point in time Ill have to see how much secondhand runner sell for in a downturn, maybe not the deposit on a house that they are priced at today.
     
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  14. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    The world has always been mad / off it's rocker when it comes to assets and the value they will pay for such.

    We've seen the 1630's Tulip Mania and British East India Company South Sea Bubble, various real estate market bubbles (Japan 1980's, US 2000's), the Dot Com bubble and throw Tesla in for good measure now.

    Is the below worth USD186m...?? NFI but someone thought it was. Granted this is in the extreme and not the everyday purchase by the average person but WTF, a 3rd grader could have done this but regardless someone ascribes value to it.

    upload_2020-2-8_15-33-5.png
     

    Attached Files:

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  15. Roswell Crash Survivor

    Roswell Crash Survivor Well-Known Member Silver Stacker

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    Prices are subject to the vagaries of the human condition, including mania.

    Economic actors are far from entirely rational.


    After losing a substantial sum of monies speculating in the South Seas Bubble, Issac Newton wrote:

    “I can calculate the motion of heavenly bodies but not the madness of [people].”

    ― Sir Isaac Newton
     
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  16. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    When I start pondering things like that I have to remind myself of the first rule of life - value is subjective.

    It’s like one of those happy pills you take when you’re depressed. :p
     

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