$126 trillion going nowhere.
Tue 1:52 pm +00:00, 11 Jun 2024People think sports betting is spiraling out of control.
They should take a look at the stock market.
“Out of control” doesn’t describe it.
It’s business as usual there.
In a given year, the total amount of money invested—trading volume, money going back and forth between buyers and sellers of shares—is…
$126 trillion.
That’s the first mind blower.
The second one comes when you consider how much of that money actually goes to the companies being invested in, versus simply traveling back and forth between buyers and sellers of shares.
Of the $126 trillion, about $31 billion actually goes to the companies.
Yeah.
So the idea that the stock market is a way for companies to grow, expand, and sustain themselves…are you kidding?
And the idea that prices (rising or falling) of traded shares is a reflection of the health of the US economy…are you kidding?
Many people know the stock market is a giant casino, but to this degree? With these numbers?
A mere $31 billion actually reaches the pockets of companies, and rest of the $126 trillion just moves back and forth between gamblers?
Further, the $126 trillion is certainly counted as “economic activity.” As if it were somehow part and parcel of PRODUCING SOMETHING TANGIBLE. Like cars or planes or toasters or gloves or bread or clothes or houses or fuel or shoes or tents or matches or buildings or coffee or paper or cabinets or pens or computers.
But no. The $126 trillion isn’t part of that economy. It’s gambling money. It’s winners and losers in the casino. Relative to an actual economy, it’s complete bullshit.
How do you like them apples?
Oliver Stone briefly alluded to this in his second Wall Street movie, Money Never Sleeps. I think he should do a third installment, focusing on these numbers. Flesh the whole thing out. Lay it bare.
Remember “too big to fail?”…
John Rappaport
