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(Economist)   Headline: "What Wall Street's results tell you about America's economy" Article: nothing. Fark: because the stock market is about betting that you can predict what other bettors will predict is the prettiest girl. Or the most precious tulip   (economist.com) divider line
    More: Dumbass, Bank, Bank of America, Monetary policy, Banks' loan books, big banks' first-quarter earnings, Unemployment, commercial banks, unemployment benefits  
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267 clicks; posted to Business » on 16 Jul 2020 at 11:20 PM (19 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2020-07-16 11:41:04 PM  
The tulip craze was considered to be illegal gambling and none of the contracts were enforceable. So if someone lost a lot of money, they just skipped town. Since the people gambling were mostly minor aristocrats, college brats, and stock brokers, not gangsters, the welcher could be ostracized but didn't fear having his legs broke.

In the end few people lost a significant amount of money.

Source:
Crashes and Crises: Lessons from a History of Financial Disasters, The Great Courses
 
2020-07-17 12:23:17 AM  
It amazes me that we allow the the stock market to be in a position in society that guarantees that its gambling style system can cause massive harm to society when it fails.
 
2020-07-17 4:45:06 AM  

rac23: It amazes me that we allow the the stock market to be in a position in society that guarantees that its gambling style system can cause massive harm to society when it fails.


I mean, just think for a second about what the word "capitalism" means: a society that is oriented around capital.

There are alternative things we could orient society around instead. Like around, y'know, society. There's a word for that too but it's Bad and Scary.
 
2020-07-17 7:04:57 AM  

pkjun: rac23: It amazes me that we allow the the stock market to be in a position in society that guarantees that its gambling style system can cause massive harm to society when it fails.

I mean, just think for a second about what the word "capitalism" means: a society that is oriented around capital.

There are alternative things we could orient society around instead. Like around, y'know, society. There's a word for that too but it's Bad and Scary.


There are historically low numbers of publicly traded companies now compared to the last 100 years, and fewer shares to trade on the market.
Stocks are insignificant compared to the debt market.  For example Jerome Powell, fed reserve chair is granting some $7 trillion a month in swap loans to banks using tax payer money.  That's almost as big as the entire NASDAQ.  The federal government is also issuing bonds this year which will easily be triple that of tax revenue, running historic deficits that would make GW Bush blush.  #45 and Powell are also buying corporate junk bonds,ETFs, and other bad investments to prop up 401ks until December.  They are also pushing interest rates way below the natural rate to stimulate the economy by nationalizing the debt security markets.  Global debt security markets are in the quadrillions of dollars.
Don't you dare call a centrally planned and controlled economy under Donald Trump socialism or communism though.
/comrade
 
2020-07-17 8:16:03 AM  
And your retirement depends on it.
 
2020-07-17 9:10:56 AM  

Tyrone Slothrop: And your retirement depends on it.


That matters less and less as millenials and later generations aren't even offered 401Ks, and the ones that do get no matching.
 
2020-07-17 11:09:33 AM  

pkjun: rac23: It amazes me that we allow the the stock market to be in a position in society that guarantees that its gambling style system can cause massive harm to society when it fails.

I mean, just think for a second about what the word "capitalism" means: a society that is oriented around capital.

There are alternative things we could orient society around instead. Like around, y'know, society. There's a word for that too but it's Bad and Scary.


Capitalism does not have to be inherently reckless.
It is that way because we allow it to be and many of us want it to be.
When they screw up enough then the government has to bail them out or it collapses for everyone,
 
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