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Showing posts with the label bonds

Just my thoughts #0760

The foundation of intelligence is memory. Without memory, intelligence cannot develop or function properly. Creativity also relies on memory as a necessary prerequisite. Forgetting is also a phenomenon caused by memory. If there were no memory, there could be no forgetting. Without forgetting, memory capacity becomes overloaded, leading to various issues. From a memory perspective, forgetting is something to be grateful for. Essentially, intelligence is driven more by memory than by logic. The strength of memory shapes priorities and influences value formation. However, humans have eventually delegated memory to external tools outside of our consciousness, not our brains. These are called records. Examples include books and cell phones. Your cell phone is an extension of you. - Joseph’s “just my thoughts”

Just my thoughts #0655

Many people in our society invest in bonds . Perhaps you, reading this article, have invested in bonds at least once and are still investing now. Bank deposits are a form of bonds, just not labeled as ‘bonds.’ When you deposit your money in a bank, the money isn’t considered bank money. Interest is paid because the money isn’t withdrawn immediately. When you withdraw your deposited money, the bank must return the principal plus interest. This is essentially a bond. However, the only reason this differs from bonds as an investment asset is that these bank deposits are not traded on the market. If bank deposits were traded publicly, the interest rate would be evaluated in comparison with other deposits, even if the principal remains unchanged. Valuation reflects opportunity cost . This is the transaction value of bonds . When goods or assets are traded in the market, their value is re-evaluated. The core of value is comparison, and the tool for valuation is opportunity cost. That’s why C...

Just my thoughts #0296

A bank trades collateral by holding debt called savings and selling bonds known as loans. Customer deposits are not bank money and must be returned to the customer as the bank’s debts. These debts lure customers; the bank lends money to them to recreate bonds with the customers’ debts. At this point, there is “collateral (mortgage)” to prevent the risk of bankruptcy between bonds and debts. In other words, banks do not possess the collateral; they merely govern it. The primary instrument of control is their bonds. In a way, banks tend not to be places where they make money with their own possessions, but rather conduct business as if it were their own with others’ collateral. Therefore, because banks need to know the value of secured collateral, the most accurate investigation of real estate and valuable gem information is key to banking. This is the similarity between a bank and a library that accumulates information. - Joseph’s “just my thoughts”

Just my thoughts #0179

Imagine you have a goose that lays golden eggs (how wonderful that would be!). According to philosophy, there are three primary approaches to utilizing this goose. The first person, driven by hunger, decides to cut open the goose, retrieve a golden egg, and sell it. The second individual manages hunger differently by selling the golden eggs as they are produced. Lastly, the third person opts to lease the goose to earn rental income. This scenario illustrates earned income, financial income, and investments. Ultimately, it comes down to how you choose to manage your time (profit in fixed terms) to fit your needs. Wealth is defined by circumstances and the passage of time. - Joseph’s “just my thoughts”