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> My long winded point is that maybe it's time to "pick winners" in financial markets, subsidizing or penalising certain types of capital markets over others.
by forapurpose 8y ago
> My long winded point is that maybe it's time to "pick winners" in financial markets, subsidizing or penalising certain types of capital markets over others.
Who gets to pick the winners? Why should those people benefit and others lose? How do you prevent the massive corruption? And why is it time now, not 10 or 50 years ago or 10 years in the future?
- maxxxxx 8y agoThe current system is not exactly neutral or not corrupt, but it's already picking winners, mainly the ones who already have plenty of money.
- dalbasal 8y ago..the people who are officially not picking winners now, but effectively are. It's time now for small businesses because small businesses are now at a massive disadvantage relative to large institutions, for reasons that are unrelated to underlying economics. It's time now for the VC market, because VC capital is an essential ingredient for making the next generation of companies. If you looked at your major companies in 1978, there aren't many that needed VC to exist in order to be. If you go through the exercise now, you will find that a decent portion of your economy may have hinged on closing a few small (in financial markets terms) on getting funded by VCs at some point. The liberal purist would probably argue that the availability of VC money is directly proportional to the potential returns to that money, which is in turn proportional to the value to the economy. I'm agnostic about this in abstract terms. It might be true. In practice though, I think it isn't true. The financial market are limited by, but not shaped by economics. They exist almost outside the economy. That's why we have financial bubbles.