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It sounding like that to you doesn't change the fact you have no idea what you're talking about when comparing buying stock in a company to a ponzi scheme.
The value of the part you own can increase and be sold, thus earning a profit. It's called a capital gain. That capital gain has value, I use it to buy fun things like beer and rent.
Correct for the most part (a first for you) but the "share" is not make believe, and none of this validates your claim that it is a ponzi scheme.
If the only value is selling it in the future at higher price, then yes is ponzi scheme. The "value" has to be keeping it and garnering money. If the only way to make money is to make next person believe they can sell at an even later date for yet an even higher price, then yes it is ponzi.
Quote:
Originally Posted by oldtrader
Today, we have a terrible shortage, of homes and apartments in much of this country. If capital gains tax was 90% on profit when s.old, the owners would get rid of their investments in rentals. No new rentals would be built, and currant rental homes would be sold.
There is a population drain elsewhere. Those people who cannot find home where they want have to move.
If the only value is selling it in the future at higher price, then yes is ponzi scheme. The "value" has to be keeping it and garnering money. If the only way to make money is to make next person believe they can sell at an even later date for yet an even higher price, then yes it is ponzi.
There is a population drain elsewhere. Those people who cannot find home where they want have to move.
While it may be an example of the greater fool theory, it clearly isn’t a Ponzi scheme.
It can also be said that if wages are to low for the poor class, they would not make the effort to get a job and would instead hold up people at gun point and take what they need.
I do not agree with either scenario but it works both ways.
We talk about the wealthy not willing to invest if there is no return on their investment.
Imagine how it is for people where there is no return on their survival.
An wise investor will just find other avenues to exploit.
A dumb poor person will will go back to the cave man era and take what they want.
When corporations invest in a market to increase economic activity and high end real estate, prices rise for everyone.
Why do you think major cities have become unaffordable for normal people.
I think we should tax everything at 90% and have the govt. decide what you should do for a living.
Great thread!!
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