• papalonian@lemmy.world
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    10 months ago

    Do people generally need a smoke screen when they sell their (assumedly) legitimate investments for profit…?

    How would funding a very public search be used as a method for staying out of the news?

    • Tarquinn2049@lemmy.world
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      10 months ago

      I think the implication is the appearance of doing it for a good reason, rather than the timing implying that they want to pull out right now to get theirs at the expense of anyone still left in.

      The stock market doesn’t create money from nothing, it’s people with good timing taking money from people with bad timing. When someone cashes out, it slightly hurts all other holders and the company itself. The bigger the cash out, the more it hits the rest. A big enough cash out can also trigger more people to do the same.

      Basically, getting rich on the stock market, just like almost every other way of getting rich, comes at the expense of other people. It’s just a bit easier to handle since you’ll likely never meet or even hear about the people you hurt. So it’s easier for people to stomache, or pretend it isn’t their problem.

      • maynarkh@feddit.nl
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        9 months ago

        The stock market doesn’t create money from nothing

        The derivatives market is valued around 1,000,000,000,000,000 USD, around ten times the world’s GDP. Where’d that come from then?

        • Tarquinn2049@lemmy.world
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          9 months ago

          Where indeed would that money come from. It hasn’t come from anywhere yet.

          If someone were to try to pull that money out, it would certainly have to come from somewhere. And my bet is it’ll be the same as the rest of the stock market, it’ll come a little bit from each other person that didn’t pull out yet.

          If anything it just sounds like that is a bubble that pretty much has to burst at some point and really fuck over the vast majority of people participating if it literally can’t possibly be realized. I would stay away from anything that has bloated to a theoretical value that is beyond possible.