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We're heading further into a reality where there just aren't enough jobs. All the money has been hoovered into the stock market. There's just not enough floatin
by JackMorgan 1y ago
We're heading further into a reality where there just aren't enough jobs. All the money has been hoovered into the stock market. There's just not enough floating around to pay people, it's all going into LLM electricity or graphics cards.
We should be living in a time of ease, where the whole planet is sustained with all of us only working a few hours a week. Instead most people are fighting for scraps barely able to afford rent.
It won't continue like this forever. The line doesn't always go up.
- Avicebron 1y agoTentative book title: The Line Stops.
- abbycurtis33 1y agoMoney doesn't sit in the stock market. Value, sure, but the money goes right back into the economy.
- dismalaf 1y agoMoney only goes to the company to get reinvested when the company sells shares, so at IPO time, when an insider sells, when more shares are issued, etc... Otherwise, it's one asset holder selling to another asset holder, usually at ever increasing prices. So yes, a lot of money is simply sitting in the stock market. Now, some does come back in the form of share buybacks and dividends. That being said, the average dividend yield is significantly less than the long-run average (it's less than 2 percent right now, long term average is above 3%).
- robjan 1y agoWhen I buy a stock the seller gets the money. The money doesn't "go in to the stock market".
- Ekaros 1y agoQuestion really comes to what does the seller do with that money? Buy some other stock? Buy some other asset. What fraction they actually spend to buy goods and services?
- deleted 1y ago[deleted]
- mathiaspoint 1y agoThe secondary market drives the primary market.
- simpaticoder 1y agoWouldn't it be nice if individuals decided at the start of their career how much money was "enough" for them, and made a pledge to retire once they hit that number. Then society can give them an "I won!" hat or gold card or something, and the next guy can take the role. In this way all enterprises become an engine pulling new hires off the street, and emitting independently wealthy people to go and enjoy their lives. But instead we have a tiny minority of people who control more and more capital. This has well-known and terrible consequences for society from almost every angle. What I don't understand is why the .1% don't want to step aside and let someone else have a turn. It's funny that our bodies have stomachs, so we know when we've eaten "enough". But money doesn't get stored in the body.
- sidewndr46 1y agoYou'd have to have some guarantee that the government would never alter the amount of inflation they create for that to be reasonable
- charlie0 1y agoNo one can guarantee that but if you place your dollars into assets, those assets will inflate.
- Uvix 1y agoExcept when they don't, like Japan's stock market from 1989-2024.
- charlie0 1y agoJapan has had relatively low inflation until recently.
- sidewndr46 1y agoThen you have a bunch of assets, not money.
- deleted 1y ago
- graeme 1y agoIf you buy a stock from a new share sale, that goes to the company as capital. The company then spends the money. The unenployment rate is quite low. There are complaints you can make about the economy but the model of money you laid out is completely wrong.
- chao- 1y agoEDIT: I wrote this in a rush intending to refer to general market entry. In a broad sense, what I ended up writing is incorrect. To preserve the accuracy of the comment history I will not remove my mistake. >All the money has been hoovered into the stock market. I think you might misunderstand what the stock market is. Or perhaps you misunderstand what what stocks are? When you purchase stock, it doesn't get locked in a vault, with your name written next to it, and the number of shares it got you on that day. That money goes to the company, and they use that to finance their operations (and ideally, further growth). That financing may go directly to salaries, or even if it goes to services, those services are paid to someone who pays salaries. If your claim is instead that "all" of that money, or some meaningful majority of that money, is going to electricity and AI silicon, I would invite you to do some basic math on the companies involved.
- keernan 1y ago>>That money goes to the company When you purchase stock, your money goes to the seller of that stock. That's what makes a "market". The stock market isn't a bunch of companies selling their stock to the public.
- jaco6 1y ago[dead]
- sszz 1y agoThis is not how stocks work at all outside of stock offerings…
- chao- 1y agoYes, I was intending to discuss stock offerings. They are just another form of financing. One of many. I incorrectly explained what I meant, and broadly speaking, what I wrote is incorrect. However, I stand by my statement that "all" of the money is not going to electricity or AI silicon.