A question about the Stock Market.

[Ani Yun Wiya]

Is the Stock Market a necessity of economic life ?

Or is it simply an elite gambling parlor ?

[lostnotforgotten]

1. Supposedly It Is Central To Capitalism - Note That Modern Corporations

Did not exist until the advent of the Hudson Bay Trading Company.

http://en.wikipedia.org/wiki/Hudson%27s_Bay_Company

Even then, they were strictly regulated for fear that they would amass too much power.

For a good treatise on these matters see Unequal Protection by Thom Hartmann.

http://ecx.images-amazon.com/images/I/51H13VHWD0L._SL500_BO2,204,203,200_PIsitb-dp-500-arrow,TopRight,45,-64_OU01_AA240_SH20_.jpg

http://www.amazon.com/Unequal-Protection-Corporate-Dominance-Rights/dp/1579549551/ref=pd_bbs_sr_6?ie=UTF8&s=books&qid=1221987801&sr=8-6

[Shardik]

3. The Wiki article is fascinating. Thanks for the link.

I think I'll see if there's an inexpensive copy of Hartman's book at Amazon. Interesting subject.

[lostnotforgotten]

4. My Pleasure - 5 Years Of Unemployment Taught Me A Lot - Glad To Share

eom

[Robbien]

2. It is necessary for economic growth.

It is how companies get money to develop their business.

Unregulated stock markets are casinos. Regulated ones generate orderly economic growth.

[lligrd]

5. Not At All Necessary

Any good company will be able to generate profits and reinvest or get loans as needed. The Stock Market always has been and always will be a casino.

[Shardik]

6. I don't think so.

Not in today's markets. It allows others who have no real interest in a company to acquire a large portion of of a corporation's profits negating the corporation from being able to share those profits with those directly concerned with making the profits possible (ie: the employees).

Whereas if the company went to a legitimate lending institute for funds rather than "selling" their company to a market of gamblers, everything would be much more above board and the institutes would take the hit rather than the individual investors in today's markets. Don't get me wrong, I play the markets and have made and lost money in them ( a lot here lately) but the system is for the corporations, by the corporations and for the corporations.

A corporation exists for only one reason. To make a profit. There is no reason that we should expect them to have a conscience. They don't. They are there to make themselves and their investors money and have no other moral than that.