4 ms·
That's not really true. So long as stock indexes generally move up, everyone can make money. The battle is over who makes more and more quickly. I'm a passive i
by tootie 6y ago
That's not really true. So long as stock indexes generally move up, everyone can make money. The battle is over who makes more and more quickly. I'm a passive investor just plowing savings in index funds and making like 12% a year. All the mechanics of day trading vs working for a bank are pretty similar, but the difference is scale. And the ability to hedge bets.
- pas 6y agoIndices are going up because people are putting money into the market(s), and governments (legislatures and central banks) are printing money in order to prevent market collapse, because that'd mean liquidation events, meaning every mark-to-market asset will suddenly worth nothing, every company will become toxic overnight, banks will (have to) stop funding companies, companies will cut costs (fire everybody, stop every kind of project/investment/capex), and everyone will try to sell things to make cash to pay back debt, which can start a deflation spiral. The asset bubble is an unintended consequence, it's the "lesser evil". But it's again the rich get richer.