That’s the game, but if people are making some money they tend not to notice.
]]>Yep…
Market Gambling
When I was a lad of 30, just beginning to invest,
My advisor sat me down and said, “You mustn’t be obsessed…
I don’t have a crystal ball or magic future-viewing stone,
But the market generates new wealth, like nothing ever known.”
So I put my hard-earned money in a recommended stock,
And I watched as prices fell… I feared investment was a crock.
When the broker said the wealth would grow, just watch the bottom line,
He was right. There was some gain. He never said that gain was mine…
– SB the YSS
Instead of raising the cap, just get rid of it. It costs a lot of money to modify payroll software to deal with that cap every year. The tax system needs to be simplified.
“Managing a portfolio” tends to make more money for the managers than the clients.
]]>But, really, anything but privitize it.
]]>As for raising the age, if you are in any technical field and you are 45 or older, you are in your last job. If you lose it, statistics say you won’t get one to replace it. Raising the retirement age makes no sense at all, and there is no reason to do it.
Badtux, we need to go back to short term/long term rates on capital gains to stop the gambling. If you have to hold the stock for more than a few seconds or pay significantly higher taxes, people might start acting like investors again, and that includes CEOs and boards.
Of course, you’re right that after the IPO, unless a company puts out more stock, the company makes nothing in the stock market. A Sam Walton noted after a big drop in the market caused his WalMart stock to lose a billion dollars of its perceived value, that wasn’t real money, it just existed as a number on paper.
There are people willing to pay more for certain baseball cards than a share of Berkshire-Hathaway, so there’s not much difference.
]]>It’s nothing but legalized gambling with no real social worth, in other words. If people who bought shares in companies did so knowing that they had to hold on to those shares or sell them at the same price they bought them, they would have a stake in the long-term survival of companies and insist on good corporate governance and dividends. But they don’t. Because they aren’t investors, they’re gamblers, who are gambling that the shares will go up in price at some point in the future. Which is nice and all, but has absolutely nothing to do with investing.
– Badtux the Startup-survivin’ Penguin
]]>Been saying the same thing over at my place for what seems like aeons now – and finally, finally – people are starting to catch on.
The rich always have walked away from bad deals. Walking away from mortgages given on stoopid terms? Not surprising at all. After all, they don’t worry about their “credit scores.” They invented that concept to take advantage of the poor.
And having a fraudulent (multimillionaire) “progressive” from N.C. head the commission to get rid of Social Security? A brilliant stroke from our truly “black” President.
Thanks for staying on top of this!
S
they know it’s coming and things are going to get a lot cheaper for people with money and a lot more expensive for people with loans.
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