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That's the fundamental problem. The function of the finance system in a healthy economy is to ensure efficient allocation of capital. Playing poker has a neutra
by kenster07 13y ago
That's the fundamental problem. The function of the finance system in a healthy economy is to ensure efficient allocation of capital. Playing poker has a neutral to negative effect on the system.
- dylangs1030 13y agoWell you're the one who used the word poker, so I guess it depends on your definition here...but the financial system somewhat revolves around poker. Valuations of companies are only important to investors because of the inherent gambling. If you purchase capital at a single valuation that never rises or falls, what's the point? Even an index fund pursues gradual increases over time. ...Or am I building a strawman here? Is this not where you were going?