3 ms·

The water company is based on a real, tangible resource. Stock markets and financial instruments are tools of imagination based on speculation and 'confidence.'

• taligent 14y ago
  No. Financial institutions do a LOT more than just speculate and invest. They also handle and manage capital for everyone from consumers, businesses, enterprise to other banks. And capital is every bit a tangible resource as something like electricity is. I personally was outside the Northern Rock branch in the UK when it went under. Over 3/4 of the people in line were scared and worried senior citizens. People forget that financial institutions affect EVERYONE.
  • toyg 14y ago
    There is institution and institution. The problem with Northern Rock and friends was exactly that they were playing recklessly with "senior citizens' money"; in a better world, that sort of reserve would be handled by a different entity with stricter, more conservative policies than you'll find in a "grow at all costs", ambitious little company.
• paulhauggis 14y ago
  Well, our currency is really just ink and paper that has a value only because we think it does. Whats your point?