This headline is in an FT newsletter this afternoon:
What is the message? It is that what the FT and Goldman Sachs describe as the private capital industry, and which we might describe as stock exchanges and the companies quoted on them, are very happy that Iran has distracted attention from the fact that private companies are currently heavily overvalued because of over-reliance on the excessive evaluation of AI companies.
Never doubt the callousness of private sector markets in pursuit of irrational profits.
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Could the economic system work with out the stock exchanges and the market?
Yes
Can the work economic system work with out the private sector markets.
?
See perevious answer
Can the economic system work without the privet sector markets.
How? We need pivate exchange. We need small business. BR sandwiches were truly terrible. This does not mean we need financial capitalism.
I’m struggling to understand. Is this something to do with “hedge funds”?
No
This comment refers to stock markets
I got the question about private sector markets. It was the follow up about privet sector markets that I found confusing. Lol!
Oh, I don’t doubt it at all!
Well firstly of course how did the (in) famous British Rail sandwich compare with what else was on offer in that period.
Then of course they brought in Pru Leith and things got better
Oh and the Japanese Bullet Trains stay on the track at up to 200 mph thanks to research done by dear old BR
They were much worse. That is how we knew.
Markets have been allowed to become casinos for the wealthy where the winners reap huge rewards for gambling on the success or failure of companies or just the direction of movement of certain sectors and even the whole market. At the same time, they are supposed to provide a safe haven for our private pensions and our savings. I have no doubt the pensions and savings functions could be left to a competent state, if there were such a thing.
The whole edifice is a waste of resources that could be put to better use. We need teachers,doctors, nurses, technicians, and good managers. Less so bankers and brokers, especially the chancers amongst them
I’m not against gambling per se, but financial institutions shouldn’t be doing it while pretending they are taking calculated risks with other people’s money. Let them bet with their own money. Perhaps they would be less cavalier.