Recession in kapilands? Possible or not??

[Guest]

Would it be possible for a recession to happen i kapilands!?!?

[Guest]

I dont think so. This is because all company values are absolute, not speculative and subject to fluctuation with a stock market.

Also, a company can not exist in negative equity in this game.

So, no, nothing like a real life recession could happen.

hmm... well if the NPC was shot by the guy who done JFK then maybe...

lol

Ted

[Guest]

well if certain players quit, then yes i guess its possible.

[Guest]

Even if certain big players quit, recession is still not possible because the NPC demands is certain.
And do not forget this, player and player do trading because in the end they want make end product and sell to NPC. So as long as NPC demand is still there, recession is not possible. If you are those who only depend your life on some big player, then you take the risk.

Don't simply give wrong info to new players.

[Guest]

kind of recession is possible in my humble opinion. Imagine cmb quits, that means millions of wardrobes would stay in the warehouses. prices would drop, people would stop producing them, meaning wood price would drop, with it price of power and water. people wouldnt be able to expand that much anymore and so the prices of stones and steel would drop, consequently prices of iron ore, coal and minerals

and the other retailers would be very happy because suddenly there would be enough cheap proucts on the market

[Guest]

Even if certain big players quit, recession is still not possible because the NPC demands is certain.
And do not forget this, player and player do trading because in the end they want make end product and sell to NPC. So as long as NPC demand is still there, recession is not possible. If you are those who only depend your life on some big player, then you take the risk.

Don't simply give wrong info to new players.

For example, when golden water quit kapilands, many televisions producers and wholesalers were affected. Only certain products are offered by the NPC, while other important products are not. Big players effect the game greatly, but eventually that spot will be filled in because of demand.

Don't simply give wrong info to new players.

[Guest]

I know if I just decided to quit I would screw up a couple of businesses and I have only 215 mio FA. If someone with 10 times my FA quit, had their account deleted etc. and they had many suppliers (like Chris and Milenko) then a lot of people would be in pretty harsh shape.

@ Advanced Electrics: I noticed that the electronics market is one of the most profitable, but it is hard to find suppliers (unlike on the German realms where TV's are probably the most popular product). How are the printers going anyways?

[Guest]

Imagine this situation in realm 2: Dominance Inc. and The Damned "left" the game. Wardrobe and wood producers get in trouble. They also had good sales strategies, so without them the NPC price for wardrobes will fall. Now, imagine that for some reason, the gas supply at the NPC gets higher than demand. The price in stores will fall dramatically, followed by trouble with wholesalers and oil producers. This could mess with 2 of the most profitable and popular business lines in the game. I think we could have a short time of kind of a recession, but I think I wouldnt be permanent. So, in my opinion, many factors together can cause a temporary recession

[Guest]

Imagine this situation in realm 2: Dominance Inc. and The Damned "left" the game. Wardrobe and wood producers get in trouble.

If this would happen i'd surely try to take over dominance his business, i'm in the furniture business and selling large quantities in shops wouldn't do me anything bad, I just don't have the ability at this moment to sell more furniture for a higher price, that's all.

[Guest]

Imagine this situation in realm 2: Dominance Inc. and The Damned "left" the game. Wardrobe and wood producers get in trouble.

If this would happen i'd surely try to take over dominance his business, i'm in the furniture business and selling large quantities in shops wouldn't do me anything bad, I just don't have the ability at this moment to sell more furniture for a higher price, that's all.

I meant the wholesalers. I have some friends in TIB that got in trouble after this happened. And the retailers would probably experience price drop in their shops because I am sure Dominance and The Damned had large slices of the market selling at high prices, increasing the average price. Well, we are talking about realm 2 and you are from realm 1, right?

[Guest]

I wonder why it is so difficult to understand this:
Big players quit, million of wardrobes and TV or whatever when products stay in warehouses. Ok, think twice, where did those products go in the end if those big players are not quiting? NPC hands, right? So it doesnt matter big player quits or not, if you are focusing on npc sales.

Only those who are highly depend on big players or intermediate products/material producers will suffer. But it is fast for them to restructure their business and switch to npc products, so even smart enough to take over big player position.

And this is not "recession" even, the true recession is not only player vs players sales drop, but also the npc sales, the demands for all products dropping. If recession happen, everybody will be affected. because less npc demands = less demand of intermediate product = less demand of materials, thus economic are dead. So I hope you understand what is the true meaning of "Recession".

I am asking to you guys offensively , especially those big players "Do you really understanding real Economic, and how it works?"

[Guest]

I am asking to you guys offensively , especially those big players "Do you really understanding real Economic, and how it works?"

Do you though? Because from this sentance all i can gather is that you are illiterate.

[Guest]

The demand per country is partly based of the number of square meters built in that country. If a large amount of people where to quite and destroy their buildings rather then sell them to other players to NPC demand would be effected. Add to that player demand would be effected as those players would no longer be buying and selling products. That is when it would turn into a recession.

[Guest]

The demand per country is partly based of the number of square meters built in that country. If a large amount of people where to quite and destroy their buildings rather then sell them to other players to NPC demand would be effected. Add to that player demand would be effected as those players would no longer be buying and selling products. That is when it would turn into a recession.

Thats fairly unlikley to happen so i guss that answers my question.
Thanks All

[Guest]

No, it's not possible for recessions to happen in Kapilands. This is because Kapilands doesn't have central banks, such as the Federal Reserve, to extend credit to people and peg interest rates.

Recessions and depressions are created when interests rates are pegged by central banks below what market demand would put them. These low interest rates makes the supply of money too easy and gives capitalists the wrong signals as to the state of the economy. These unnaturally low interest rates cause businesses to build too much infrastructure for what the market can sustain.

At a certain point, the amount of unnecessary infrastructure built becomes too much, and the bubble collapses, creating "the recession." The unnecessary infrastructure is then liquidated and put to better use where the market demands it.

The truth is that we would never have depressions or recessions in real life if central banks were abolished and the gold standard were reinstated.