Can someone red pill me on the stock market? Why do so many people hate/dislike it? What would the political and economical consequences be if we shut it down?
I honestly can't see the issue with the stock market to begin with....
Companies sell shares, or partial ownership, of their company to the public and their valuation fluctuates based on their fiscal performance. There's nothing conceptually wrong with this.
Day trading is red pill.
>>71528855
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>>71528855
Pretty much this, the stock market in theory is probably one of the greatest ideas in human history. But it's now just nothing more than a corrupt casino, shorts, derivatives etc., Ruined it.
Stock prices are based on perceived value and people aren't intelligent enough / don't have enough information to understand what is a good stock or not. Result is crashes like the dotocm burst where money is just flying around on people believing things are valuable when they're not.
Also, top 1% owns about half of it. They're pretty much able to manipulate it as they see fit and all the small players are just along for the ride with no control or understanding of what's happening.
>>71528469
You gotta respect Elon man.
>>71528469
they need to clean it up or get rid of it, the whole idea started as a way for rich people to travel from nation to nation without risk of being robbed, with that came the idea of credit and the eternal shylock has been fucking everyone ever since
>>71529770
fuck Elon, he's an actor, he doesn't do shit but look good on TV
Some problems with it:
Computarized trades trying to make a profit on miniscule fluctations by beating everbody else to it
Inside information / market manipulation (pump and dump)
Some people have amassed so many connections and so much wealth that they can just manipulate the market to their liking
for everbody else the market is nothing else but a platform to buy and sell shares and participate in the development of that business / market.
Even derivatives make sense in a way as they are used by better educated players to soften the blow of mass hysteric events
>>71529772
I don't think that's how it started.
>>71529804
What makes you say that?
>>71528469
Let's count the reasons.
1) Stocks do not reflect the value of a company. They reflect feels and trade algorithms. For example, 3M stock lost 40% of its value one day only to recover it hour later. Of course, 40% of 3M the company didn't spontaneously dissapear only to mysteriously reappear hours later. Rather, automatic trading algorithms fed back into one another and wiped its price for no tangible reason.
2) It's gambling, and the wealthiest 1% of people hold 42% of the chips. The top 5 %hold 72%, the top 10% hold 85%. Your contributions are completely at their whim. If the stock market were a poker table, your be playing at a WSOP table with a dollar. The sheer volume these small number of people own allows them to rig the game and make huge landfalls, see Mr. Soros and his manipulation of currency.
3) This ties into #2. Not only are you completely at the mercy of the big players at the table, but it's very difficult for you to actually walk away. Removing money from a 401k or a Roth requires you to take a massive tax hit and often prevents future contributions for a few years. And while wealthy people also take a tax hit, it's the cap gains rate of 15%, yours is taken in the form of income, so 30% easily. This means that when there are downturns, wealthy people can remove themselves from the table and you are stuck playing based on tax incentives. They can then buy in at the bottom and ride your contributions up again, only to have an easier time pulling out when there is a downturn. Simply put, avoiding downturns is the easiest way to make money in the market, and it's easier for wealthy people to do that than you.
4) Insider trading can be a big boon for the wealthy who often get in front of positions, sing their praises in rags such as the WSJ, Fortune, etc. and then sell to you as you learn about the stock.
There are other concerns, too.
That said, if you don't invest you don't retire. The wealthy have us by the balls.
