Shared Top Border
sdcia_head3.jpg (14795 bytes)
SDCIA Message Board
Register Latest Topics
 
 
 


Reply
  Author   Comment  
larrywww

Senior Member
Registered:
Posts: 2,037
Reply with quote  #1 
https://www.washingtonpost.com/news/wonk/wp/2017/04/12/a-u-s-senator-is-in-a-showdown-with-people-who-own-alpacas/?hpid=hp_no-name_hp-in-the-news%3Apage%2Fin-the-news&utm_term=.e181664157ff
rickencin

Avatar / Picture

Senior Member
Registered:
Posts: 940
Reply with quote  #2 
Even animals promote their own self interest.  Gaming the system is human nature.  Tax deductions are commonly bogus.  Especially charitable donations.  I remember the good old days when you could donate your 20 year old beater car that needs to be flat bed towed to the junk yard at full retail, perfect running condition.  Who's going to check?  Even donating used stuff to goodwill and your local church you can put just about any price on it you want.  Hint:  Want to really score?  Go to a church rummage sale in an expensive neighborhood.  You'd be amazed at the stuff rich people no longer need.  I used to go to the church rummage sale in Atherton, CA and they had fabulous stuff, dirt cheap.  I wonder how well funded do-gooder government charities would be if giving was voluntary?
__________________
Rick
larrywww

Senior Member
Registered:
Posts: 2,037
Reply with quote  #3 
Tulips, anyone?  According to the article:

Economists suspect that hyping may have played a role in the alpaca investment bubble last decade. In 2005, the average male sold at auction fetched over $70,000, implying significant savings for purchasers who used the tax exemption intended to stimulate business investment

So, $70,000 was the 2005 auction price for an adult male alpaca----before the price skyrocketed 80%.

The truly odd thing is that the return was probably not really inferior to real estate (although it doesn't have the rental income)----which is truly bizarre.

Even with the hype, it seems very hard to see how sensible investors could be persuaded to participate in such a flaky enterprise.
rickencin

Avatar / Picture

Senior Member
Registered:
Posts: 940
Reply with quote  #4 
Actually, I read it the opposite way.  "In 2005, the average male sold at auction fetched over $70,000, implying significant savings for purchasers who used the tax exemption intended to stimulate business investment." "And like all bubbles built on speculation, it eventually burst: One study found that the price of male alpacas collapsed about 80 percent between 2005 and 2011 as speculators realized the creature was not commercially viable livestock." "Extraordinary Popular Delusions and the Madness of Crowds is an early study of crowd psychology by Scottish journalist Charles Mackay, first published in 1841."  Momentum investing is still popularly used in the stock market.  Positive Feedback systems are scary.  If the price of the stock goes up, more people want it, so the price of the stock goes up even more.  At some point, buyers realize the price is ridiculous on a fundamental basis and sell.  Now the price of the stock goes down, so people sell it and the price of the stock goes down even more.
__________________
Rick
Previous Topic | Next Topic
Print
Reply

Quick Navigation:

Policy