Chapter seven- question seven

In this chapter, you are given the four major financial instruments to Wall Street, buying and selling. 'Raising capital', ''Storing,protecting and making profitable use of excess capital',Insuring against risk', and 'Speculation'. The one that helped clarify some things I already knew was the 'storing,protecting and making profitable use of excess capital'. He explained that listening to the wise tale of putting your money under you mattress is a foolish mistake. Why? Because of inflation which decreases the amount your money if worth. So over time, the value of the dollar goes down and your once 1 billon dollars is now 180 million. He tells you to invest, buy stocks, bonds, etc to use your money and raise revenue. Also saying that financial markets due more than just take money from the wealthy, they are more sophisticated. Like the agrarian societies, they eat (spend) what they can right away and store (save) what they don't. Now giving you the opportunity to either spend your money, income, savings, etc now or later. Although I already 'knew' this information, he explained it in an interesting, semi-relatable way, which made it much easier to understand.