Quote:
Originally Posted by Draug
I think that is part of the problem.
As crazy as this sounds, I think Bush was right when he said "The market is not functioning properly". That is just it, IMO. People are acting on speculation and with mass panic. Nothing really makes sense when people do that. I am pretty sure the stock markets arent meant to function this way - arent they supposed to be a tool for long term growth and investment in companies that have a good outlook?
It is absolute mayhem. I just wish I knew enough to make some real money out of all this panic.
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Isn't that ever the truth. I believe the stock market was initially supposed to be about buying businesses for its value, ie. its dividend yeild. Now, its mostly speculation based upon what other investors think a stock is worth. One of my friends was offered by one of the Wall Street companies to write software that would trade market derivatives based upon certain trends - thats how stocks are traded these days. If you get a chance, read a book "A Random Walk Down Wall Street" by Burton Malkail.
As you said, the stock market is a zero sum game. For all those losing tons of money - someone else has made that money. While alot of life savings are being wiped out these days, someone out there is making a ton of money. And those golden parachutes for the CEOs.
