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>This would be wealth destruction no different from simultaneously reaching into every person's wallet and removing some amount of cash and burning it. Unreali
by throwawaylolx 7y ago
>This would be wealth destruction no different from simultaneously reaching into every person's wallet and removing some amount of cash and burning it.
Unrealised profits are very much different than physical cash.
- bko 7y agoI own the stock and can sell it for $2000. If the value of the stock drops to $0 and I can no longer get $2000 for the stock, it would be no different than me losing $2000 cash
- michaelt 7y agoIf I have $0.50 cash and someone reaches into my wallet and takes it, is that any different to if I've got a lottery ticket with an expected value of $0.50, and the draw occurs and its value drops to $0 when it doesn't win? Some would say that in the first case it's morally wrong to steal my cash, whereas in the latter case I consented to the risk of my ticket losing when I purchased it; and therefore performing a lottery draw is not an immoral act.
- bko 7y agoYes, if the Amazon model doesn't work out and you lose value, that's not immoral. It just happened like your lottery. If the value decreases from people stealing from Amazon then it is the same as going in your wallet and taking the cash.
- JetSpiegel 7y agoHow is this "stealing", if Amazon advertised the price they sold the product at?
- tripzilch 7y agoExcept you did't have $2000 cash because you invested it in Amazon, whose value dropped to $0.
- nkrisc 7y agoYou'd still own the stock even if it was valued at $0. You didn't lose anything.