: How can one stock influence a country and what is the point of stocks?
It’s clear now it’s a mistake having stock markets:in economy what is the meaning of AAA stock and how can stocks influence one country’s economy?i thought stocks are for over rich bastards so how can world economy go wrong because stocks are falling?Please explain to me like i am 5 or something…thank you!
Answers and Views:
Answer by Michael Harris
No, it’s not now clearly a mistake having stocks. The stocks are doing the right thing – it’s the government that’s doing the wrong thing.
Stocks means shares of ownership. Say you buy a house, and you and your brother equally share the expense. So you agree to each equally have a share of the ownership. That’s shares of ownership.
Stocks is like that, only they are used where there are very many people with an ownership interest, and they may be buying and selling them all the time. For example in a big company, let’s say General Electric, many many people – hundreds of thousands – may own shares, and they don’t know each other, and these shares are being bought and sold all the time. Unlike you and your brother’s house shares, stocks are specially made to be easy to buy and sell without major paperwork hassles.
Stocks aren’t for rich bastards. They’re for anyone who wants to *own* productive assets. Many ordinary workers own stocks, because you don’t need a lot of money to buy them. They may be only a dollar or two per share.
Remember, by owning something that produces food, or clothing, or shelter, or transport, or communications, you are not doing society a disservice. You are not harming anyone. You could just *spend or waste* the money. The fact you don’t, that you put it into stocks is *good* for society, and for poor people, not bad.
The world economy is not going bad because stocks are falling. It’s the other way around. Stocks are falling, meaning the value of your house-share is going down, meaning the value of your house is going down, because *governments* are looting the economy, taking money from honest hard-working people, and *giving it away* to anyone they think will vote for them. Government is destroying capital by stealing (they can legalise their own stealing). It’s like government is going into your home, and taking away the curtains and paintings, or digging up the foundations. So your house is worth less. It’s not your fault for owning a house! Don’t blame stock-owners! It’s the government’s fault for looting you.
How is the government looting the economy? Three main ways;
1. by taxation
2. by inflating the currency = printing money = lowering interest rates
3. by borrowing money.
All these things *destroy capital*, and capital is what makes a country rich.
The solution is not to blame stock-holders, the solution is to stop government from taking other people’s property and wasting it on wars, handouts to billionaires, and interfering in everything.
Those rich have taken over people’s government ” back doors” that’s why.
All corporates are deep in global gamble. Does anyone know meaning of 1.2% growth ? they are incompetent to earn more profits from industry.
stocks are not AAA or kind rated…. it is for fixed income ( presumably capital protected) bonds . But, enough warning AAA–>AA+….for all gamblers, so they tumble.