A Brief Talk on Economics in Turning the World Upside Down

Angelo 2021-11-13 08:01:25

The whole film is very storytelling, which is easy to make people interested, and the film uses a variety of methods such as witty exaggeration and irony, which is very eye-catching. Regarding the successful reversal of the last two, I found the answer in reading Xue Zhaofeng's economics lectures today. The Duke brothers mistakenly believed in false news that frozen orange juice would rise in the future, so they bought a lot, and other investors followed suit, creating a false appearance that the price of frozen orange juice soared in the short term. At this time, Louis and Billy acted as sellers, and they chose to sell at a higher price. Finally, when the Secretary of Agriculture announced that the production of oranges had no effect, it meant that the price of oranges would not rise. The Duke brothers had to pay for the difference in orange juice and the premium in the futures market, while Louis and Billy only had to pay a low price at this time. Buying is equal to the high price of the previous selling, so that the difference is made. The second financial movie I watched recently, in summary, is human greed and game. However, in countries where public ownership is the mainstay and multiple ownership systems develop together, the state is the stabilizer behind it and will not be manipulated by the market. Therefore, as Xue Zhaofeng saw, the futures market is not a zero-sum game but a positive-sum game, redistributing risks. So as to enhance the happiness of the public!

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Extended Reading

Trading Places quotes

  • Louis Winthorpe III: [after trading ends on FCOJ, he and Billy Ray are quickly finalizing up some last minute sales. Once they're finished, they both look up to see the cost at 29. They then look at one another and scream in celebration and hug. After they're finished, they see the Dukes looking at them] Happy New Year!

    Randolph Duke: [He drops their now-worthless sales papers on the floor]

    [hoarsely]

    Randolph Duke: Winthorpe.

    Mortimer Duke: [stunned] Valentine.

    Billy Ray Valentine: Hey! How'd y'all make out today?

    Mortimer Duke: How could you do this to us after everything we've done for you?

    Billy Ray Valentine: Oh, see, I made Louis a bet here. See, Louis bet me that we couldn't both get rich and put y'all in the poor house at the same time. He didn't think we could do it. I won.

    Louis Winthorpe III: [grinning] I lost.

    [Pulls it out of his breast pocket and shows it]

    Louis Winthorpe III: One dollar.

    Billy Ray Valentine: [Accepting it] Thank you, Louis.

    Louis Winthorpe III: After you.

    Billy Ray Valentine: Certainly.

    [They both leave with Billy Ray doing Eddie's "laugh" and Lewis giving the Dukes the Aykroyd "stare"]

  • Randolph Duke: Exactly why do you think the price of pork bellies is going to keep going down, William?

    Billy Ray Valentine: Okay. Pork belly prices have been dropping all morning, which means that everybody's waiting for it to hit rock bottom so they can buy cheap and go long. Which means that the people who own the pork belly contracts are goin' bat-shit. They're saying, "Hey, we're losing all our goddamn money, and Christmas is just around the corner, and I ain't gonna have no money to buy my son the G.I. Joe with the kung-fu grip, right? And my wife won't f... my wife won't make love to me 'cuz I ain't got no money, right?" So they're panicking right now, they're screaming "SELL! SELL!" to get out before the price keeps dropping. They're panicking out there right now! I can feel it! They out there!

    Randolph Duke: [on the ticker machine, the price keeps dropping] He's right, Mortimer! My God, look at it!

    Billy Ray Valentine: I'd wait until you get to around sixty-four, THEN I'd buy. You'll have cleared out all the suckers by then.

    Randolph Duke: This is Randolph Duke. Advise our clients interested in bellies to buy at sixty-four. Mr. Valentine has set the price.

    [He punches up the numbers on his calculator]

    Randolph Duke: Do you realize how much money he just saved us?

    Mortimer Duke: Money isn't everything, Randolph!