4 ms·
> it's efficiency in enriching participants of the stock market. Proponents would say that it is efficienct in funding ideas that are more likely to succeed, w
by afiori 6y ago
> it's efficiency in enriching participants of the stock market.
Proponents would say that it is efficienct in funding ideas that are more likely to succeed, with the partecipants in the stock market taking a commission for the transactions.
- TeMPOraL 6y agoMy point is that "success" on the stock market isn't always a function of doing anything useful in the real world.
- fsckboy 6y agothe stock market is doing something useful in the real world. the aggregate success thrown off by the stock market is a measure of the usefulness of the stock market. participating in that is what enables to stock market to provide its usefulness. so, yes, success on the stock market is a function of usefulness in the real world.
- afiori 6y agoThis is sort of circular, the stock market can also devolve is pure speculation and go full casino, which are generally considered an example of a not-necessarily-net-positive addition to society.
- fsckboy 6y agoit's not circular, but more to the point, you suggesting that the stock market can devolve (fail) is like saying "brakes on a car can fail, so brakes are stupid." Brakes are not stupid.
- afiori 6y agoI did not say that, I said that just because the people working with stock are getting paid does not mean that the stock market is doing something useful. Parassitism also exists in free markets. Stretching the brake analogy it would be similar to noting that just because you are pressing more your brake pedal it does not mean that your car is slowing down faster, sometimes you need an ABS
- afiori 6y agoMy succeed was meant for the companies not the traders. A trader can succeed by being a parassite on the market, a company succeed by doing stuff. Whether there is more/too much parassitism is something I don't know.
- imtringued 6y agoThis is true and not just true of the stock market. It's true of the economy as a whole. The stock market is just a manifestation of a specific part of the economy. If inflation is low you can do the dumbest things imaginable and as long as you make your money back you can keep doing the dumb thing over and over again. If there was decent inflation you would have to have at least some expectation of a future gain because inflation and by extension the increased interest rates would cause your net 0 investments to be a net loss.