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Finance

How Do People Afford To Live In NYC?

how do people afford to live in nyc

This is a complicated question, I used to be a NYC rental broker so can answer this question as it relates to real estate.

  1. There is still a lot of rent stabilized and some rent controlled apartments. These apartments are significantly lower than market rate. There are people paying $2000 and under for 1 and 2 BR apts. those people NEVER LEAVE. They do the best they can with the finishes and condition of the apt, sometimes negotiating with the landlord for some basic upgrades but they NEVER LEAVE. They even treat their stabilized or controlled status as a sort of asset that can be passed down to other relatives who are occupants to the apt. So if you’re paying very low rent, this can definitely help you with cost of living.

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What Happens When A Country Doesn’t Pay Its Debts?

Most sovereign governments can, in theory, ignore their debts and default. The repercussions will depend on who lent the government the money.

It is extremely likely that no private investor or enterprise will consider lending more money (in the short term). They might go so far as to cease or curtail lending to private enterprises in that country due to perceived instability and unreliability of the government.

It is also likely the currency will devalue and there will be little incoming investment.

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What Is The Difference Between a 401k and IRA?

401k vs IRA

A 401k and an IRA are both tax-advantaged accounts that incentivize saving/investing for retirement. They both restrict withdrawals from the account in exchange for deferring or excluding taxes.

The quick rundown of the differences are the following: you have more flexibility investing in an IRA, you have a higher contribution limit for a 401k, and your employer potentially matches contributions in your 401k (basically gives you free money in the account). But let’s go into some more detail.

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How Do Dividends Work If I Buy Stock?

Dividends are actually quite simple, they’re just a cash payment to the stockholders.

For the most part public company’s that are making a healthy profit will keep that profit and reinvest it either in R&D or in acquisitions, but sometimes they give a portion of that profit directly to the shareholders – thats a dividend.

Typically if a company decides to pay a dividend it will be either annual or bi-annual, and the payout will be X% of the share price. So if you own 100 shares at a value of $10/share and the dividend is 1% you’ll receive a payment of $10.

Was Sam Bankman-Fried Running a Ponzi Scheme?

SBF/Alameda’s initial strategy was arbitraging price differences between US and Korea/Japan. The different crypto exchanges in different countries would have different prices for the same coin.

In theory this was possible but in practice it was basically impossible. They lost money in Korea due to capital controls, they made some money in Japan but still lost money overall due to the enormous amounts they had to borrow and the high interest rates they were paying.

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What is the Greater Fool Theory?

In finance, the greater fool theory suggests that one can sometimes make money through the purchase of overvalued assets — items with a purchase price drastically exceeding the intrinsic value — if those assets can later be resold at an even higher price.

In this context, one "fool" might pay for an overpriced asset, hoping that he can sell it to an even "greater fool" and make a profit.

This only works as long as there are enough new "greater fools" willing to pay higher and higher prices for the asset.

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Picture of the Day

satoshi nakamoto first post

13 years ago, the creator of the Bitcoin network, the pseudonymous programmer (or programmers) Satoshi Nakamoto, published the first forum post on the P2P Foundation website 13 years ago. The post, titled “Bitcoin Open Source Implementation of P2P Currency,” introduced the cryptocurrency system to members of a research and advocacy forum focused on peer-to-peer dynamics in society.

I’ve developed a new open source P2P e-cash system called Bitcoin. It’s completely decentralized, with no central server or trusted parties, because everything is based on crypto proof instead of trust. Give it a try, or take a look at the screenshots and design paper:
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