Simply that the stock market is currently structured in such a way that it encourages speculation (gambling) over investment, leading to the following social ills.
A parasitic "industry" of money-managers and brokers whose very structure demands they "invest" with an eye focused almost entirely on what the rest of the market is doing rather than on the intrinsic value of their investments;
the existing structure is ineffiencient, for the above reasons, because so much energy is wasted trying to make a quick buck; and
the existing structure encourages fraud. There is so much money to be made from quickly-rising share value that the temptation to cook the books is almost. History will show that Enron wasn't an anomaly, but an extreme.
In a nutshell, I think investment is a socially useful activity, but society cannot afford to let it operate as a master rather than a servant.
(Thanks for noting the stray line, by the way; it's gone.)
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dancing_serpent
Investment vs. Speculation
Date: 2006-03-01 11:41 am (UTC)In a nutshell, I think investment is a socially useful activity, but society cannot afford to let it operate as a master rather than a servant.
(Thanks for noting the stray line, by the way; it's gone.)