Somehow, I can agree with this article. Considering what is happening in the global economy, the powers-that-be must be behind all this economic collapse of nations. Just this morning, the Koch brothers of the US have been accused of causing the shutdown of their government by encouraging Republicans to withdraw support for Obama’s health care program. If governments can be manipulated, as it seems the case here, why not the stock market?
True. We used to look at the bank owners and officials as some kind of gods. In like manner, with the present economic debacle, we have ceased to adore Wall-Street-types of workers as demi-gods as well. Until people cease to trust these institutions entirely and bring them crashing down finally, they will continue to attract investors. I say, it may be time for some new form of creating wealth for more people.
So, which is which? Is the stock market a legitimate channel for creating wealth or just another playground for the rich to make more money? Perhaps, we will never know. As long as a gambler takes home some winning now and then and has fun playing, what does it matter if the casino earns millions?
That is precisely what makes investing such an exciting endeavour. These are real companies with dynamic “personalities” not unlike choosing a potential spouse or employee in whom you will invest emotions or time and money in a long-term relationship. It is not mainly about making a profit but about spending time evaluating the conflicting forces within a dramatic story and becoming part of the effort of achieving a happy ending.
As in most legit venture or undertaking, corrupt or dishonest practices will somehow creep in. We can never know the motivations of individual businesses or entities. This faulty human nature has made enterprises, governments, cities and nations basically what they are – melting pots of human goodness and perversity, and everything else in between.
I agree. As essential as formal education is in every task, experience is still the best teacher. One has to get dirty in the world in order to learn how it functions. One may learn certain bad habits along the way; but in the end, they will also prove to be ephemeral for people and systems can learn to adapt to new ways of functioning. The stock market, I believe, will evolve likewise.
This reminds me of how a monopoly works. In the 60’s and 70’s, when monopolies reached the peak of their golden reign, people began questioning their existence and led to their eventual “downfall”. In reality, the owners of those monopolies merely shifted to a more democratic way of maintaining their wealth and becoming even richer. Either they merged with other monopolies or allowed others to invest in their business through the stock market while maintaining their complete control over the business. In some cases, they turned over management to new ones and shifted or dissipated the public’s ire to those people. Who knows if the stock market is just another tool to keep our minds pliable while the monopolists continue to fleece us dry?
The banks and the stock market are merely tools for wealth creation. Whereas banks nowadays have lost much of their credibility as institutions, like the stock market, it has maintained its capability to provide investors with the opportunity to produce wealth. The opportunities given to the ordinary citizens, although very limited, still allow them to invest their earnings or acquire loans for the purpose of enhancing their wealth.
The stock market is too complex to comprehend at one glance. This website is too elementary to provide a working grasp of its dynamics and its effects on the social-economic political environment. Yes, it is a mere arm of the whole body of an organic nation; but it still defies explanation just as it is difficult to presume that the arm can be manipulated by any other organ except for the brain. The nation’s brain is the totality of the people creating a common decision through their government. The crisis we are undergoing on a global scale may be attributed to a few powerful players; but in the end, we will all be part of the solution to this common dilemma.
We forget that the economy is controlled by the few wealthy families who control both our political and social structures on a global scale. The solutions people need and require of the government will always be thwarted by this elite group. They may give concessions here and there; but they eventually adapt in order to bring about a state where they always end up being on top. In the end, the poor will always be poor and the rich always rich. It is the primary lesson of world history.
The inventors or the stock market have moved and will continue to move heaven and earth to keep the status quo which maintains their clout over the markets. Let us not be blind to the Wall Street propaganda that investors are in control and, therefore, make the whole system viable. The invisible people hiding behind those solid walls (not the financial consultants but the rich elite) make the system work as it should. As they caused the shutdown of the US government, they would rather let the stock market crash instead of reforming it to benefit the majority of people.
The solid foundations of the economic institutions may crack as they have in the past; but they will continue to stand and withstand the changes brought about by the present conditions. Primarily, these changes are no different from what had occurred in the past. The only difference is that in the past, most of the players involved were mainly individuals or institutions. Today, we are dealing with nations and regions of diverse cultural and political characters. It is more than an economic problem but a wider and more wholistic phenomenon which involves geological, cultural, political, social, physiological, psychological and spiritual factors. Money no longer runs the world but the totality of the needs and aspirations of the whole human being. With billions of them, we can see how complex a problem that can be.
The stock market is a barometer of a nation’s health and wealth. Like it or not, it determines the level of confidence that people have for their institutions. When people cease to participate in this vital engine of wealth creation, the whole structure of a modern nation ceases. We will be turned back to the barter trade system and the guild system of producing goods of the ancient times. We will still survive; but we will be in the dark ages once more.
Like most gamblers anyway, it is not the winning that matters but the challenge of the game. The opportunity to create strategies in the pursuit of wealth is akin to any other kind of adventure. You aim to win. The thought of losing, like in any game, is part of the risks of meeting a challenge.
For me, it is the privilege to become part of a company, especially famous ones, that makes the stock market a social and financial leveller. Wasn’t it the ordinary folks who blazed the trail to California gold and established one of the riches places in the world? There’s gold in them that tills!
Money has no emotions. It is as dead as the tree it came from. And, yes, it makes the world go round. Unless we learn the tricks of building wealth, we will see only dead trees and not money.
It is a time of revolutionary reforms in all aspects of society. More so in the economicenvironment. But will the stock market be sensitive to the rumblings of this radical turmoil?
The picture of the stock market as a kind of supermarket is quite apropos. Stocks and shares are the products anyone can buy or sell and these packages do represent so many real products as well as services in the external economic world.
This happens in real life, much more so now than in older days. Consider the warehouse-type supermarkets where people can buy in bulk or wholesale at a much cheaper prices. Many of the buyers do have their own retail businesses where they sell the products they buy from those warehouse store. It is a stable wealth creator. However, the stock market is not a 100% wealth creator, unless of course, one has mastered and perfected the strategies of the industry like Warren Buffet has. Even retailers have to follow certain strategies to make money on their investments.
Hence, the metaphor still applies.
The main difference is the fact that stock markets often require investors to wait out for a certain period until the best time to sell stocks arrives. But wait! This also happens to retailers who horde certain goods or products for months and years until a crisis or a slump in supply allows them to jack up their prices. However, such a gambit is frowned upon by governments and can be considered economic sabotage, especially if we are talking about essential goods, such as staple grains or ingredients of primary products such as flour and sugar.
Perhaps, this is where stock markets may be playing around with investors' money: They know of certain political or economies policies that are clandestinely leaked by legislators or policy-
Makers that have future impact on the economy of a country or of the globe. Consider oil, steel, coal, solar power, gold and other prime commodities that could be manipulated by a conniving government, business-people and stock market operators in order to favour a few people in the know. It is not an impossible scenario.
BAD REVIEWS.!
“When you consider the stock market as a venue for producing wealth, you can concentrate on financial strategies that will help you achieve this goal.” Was the stock market really originally designed to create wealth for “investors” or was it ingeniously invented to make money for the “inventors”? As you yourself mentioned, the stock market is often seen as “some kind of a casino”. Did the casinos put up their business to lose money to the gamblers? I don’t think so! So did the stock market pioneers (and the present operators as well) think of giving up potential wealth they could gain themselves in favour of others? Or is it through the money of other people investing that they create wealth for themselves as well? It seems unlikely that they also provide themselves the opportunity to create wealth by investing in the market they created. Unless, like a horse-racing track owner who rigs a race to make money on a certain horse, the stock market operators manipulate the prices of stocks, which seems such a difficult job to pull off. There must be a trade secret somewhere there, isn’t there?
But why should an ordinary investor care if stock markets make more money than anyone else as long as an investor can make money out of the markets? The opportunity is there, grab it!