The debate "Wall Street harms the economy" was started by
April 29, 2016, 5:26 am.
17 people are on the agree side of this discussion, while 12 people are on the disagree side.
People are starting to choose their side.
It looks like most of the people in this community are on the agreeing side of this statement.
Nemiroff posted 8 arguments, Daffa8799 posted 3 arguments to the agreers part.
AJKB posted 2 arguments, RogueAmerican posted 3 arguments to the disagreers part.
sagitario, Nemiroff, Daffa8799, citizenzero, joey, AzelG, JakobBoghora and 10 visitors agree.
RogueAmerican, AJKB, froyojones and 9 visitors disagree.
But they ultimately recover. Every market contraction is met by expansion.
long term can mean many many things. in the current stock market culture or obsessing on the next quarter, 10 years is super long term.
when apple showed forecasts of slightly less fast growth, their shares took a huge hit and market news was already talking about the end of apple's reign... despite it being valued at more than double the #2
Long term is about 30-50 years....But it really depends on what kind of growth. Yes, asset and security long term growth accumulated 10-20 years. And then it's the one that create speculative bubble and bust.
because by long term I mean 10 years (+/-). I still plan on being alive, preferably in a functional nation and economy.
Why should we care about long term? "In the long run we're all dead"
- John Maynard Keynes
of course not, that isn't the issue.
but we created a system that is addicted to constant growth and constantly obsessed about "the next quarter", forget the next year.
You cant have one without the other. If you buy a stock should you be forced to own the company for life?
yes, during the initial selloff, and then????
but you can sell your stock too, so those initial investors eventually cash out and the new ones didn't give the company a penny. most often they're just waiting to cash out too.
After going public
I answered that 5 posts down.
when exactly do stock market investors fork over money to the corporation?
Why do you believe the stock market system harms the economy?
Wall Street does not harm the economy. People harm the economy who happen to work on Wall Street.
Every single corporation is in it for the long time. Some people buy and sell stocks on a short time table; however, the entirety of the system expands business investment opportunity. In a proprietorship, a business has only what it has. They can only expand as far as they can.
A corporation magnifies this as instead of a proprietorship, money is funded by a vast number of shareholders. Instead of having one guy who has to fork over money, you and I allow him to buy even more. So by allowing this opportunity for a business to invest, at some risk to owners, it can expand rapidly.
at first during the initial sale, yes. after that if the stock goes up or down the company doesn't see a penny. the only profit that happens from the stock market (except tiny dividend payouts) is when the stock is sold and the stock owner makes or loses the difference. the company is unaffected financially.
what the stock market has done is create a group of people more important than consumers to companies. the shareholders. and forced companies to seek short term profits over long term stability. and that is what has led to our relative economic downfall. (we are still growing and #1, but we could have been so much more)
How? It boost up investment growth....
the stock market system hurts the economy in my opinion. I'm not sure if that is what you meant.