macrocephalopod

really doing my best not to let my philosophy brain rot pull a sophomore level “these things only have value via consensus and if consensus changes then you should adapt” in regards to everyone saying markets are broken - Markets aren’t broken, your ideology of markets is broken

is there like a 5 minute explainer somewhere that illuminates the societal benefit of the current version of a stock market because I’m allegedly smart but have no idea how this kind of speculation type financial system could be beneficial

I mean the real answer is that financial speculation or activity is sometimes entirely unconcerned with overall societal benefit, but people here will be upset if I don’t mention that the market is a mechanic to match those who seek to raise funding from those seeking to lend it

Also I haven’t read this paper apart from the abstract but I am planning on digging into it later https://www.efmaefm.org/0EFMSYMPOSIUM/2017/papers/Does%20the%20Stock%20Market%20Benefit%20the%20Economy%20-%20updated.pdf …

I guess I meant more the algorithmic semi-instantaneous stuff. I understand in broad strokes the benefits for investment/cash influx, but I don’t get why stock purchases aren’t required to be held for, say, 6 months or a year to reduce the volatility.

I mean you wouldn’t be able to have mutual funds that rebalance more often than every 6 months, or ETFs, and you’d be saying no one could sell if there was bad news, and you’d be instituting forced buying and holding only