What I find interesting is that you lose all money over the insurance amount, but you're guaranteed that someone will buy up any debt you may have, regardless of the amount. While I understand why that is, it hardly seems fair that the customers can only lose money.
All banks in EU are insured, but the max amount and percentage varies. The amount/percentage for Germany is 100% of up to EUR 100.000, according to Wikipedia.
Bad argument because you stated the problem. Insider trading is bad because of what you pretty much said. Liquidity is only important when considering how fast you want to buy or sell your stakes in a company.
If an insider knows a stock will yield him 10% profit and has a month of time to buy stocks, even if the daily volume is 500k shares. They can gradually buy shares at 20k/day, and once that news becomes public and the liquidy goes up they can sell off all of their shares in one shot pretty much. And people just just got news of the information would think that their stock has a 10% upside, but since someone already beat them to the 10%, they aren't going to get anything.
As sharp as the decline is, I am not sure if this is a buying opportunity. Most investors made big gains so more can easily afford to cut their losses.
I keep hearing realestate and low rates, so that may easily be an outlet for the money to go to. I guess we'll see.
I try not to buy too much into what he says. What he says is usually too philosophical, so the reader is making their own sense of what he says and gives him credit. He is almost a dictator the power people give him.
He actually went as far as to tell investors beware of investors not from the valley. So people don't steal in the valley as they do anywhere else?
Regarding the last bit, it's not terrible advice. One of the big differences between Silicon Valley and elsewhere is that there's a much bigger focus on positive-sum activities here. (That's in contrast with Wall Street, which has a zero-sum focus, or places like Florida, where it shades negative-sum.) It's a useful attitude when you're trying to create monster new businesses from scratch, because it's much easier to disrupt an industry or create a new one if you're creating massive value.
Google's a great example of that. They have made the world enormously better, and profited greatly thereby. Their profit is a small fraction of the value they've created. And that's why they won. Their competitors got greedy, and wanted a much bigger share of the total value created.
