• Echo Dot@feddit.uk
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    2 days ago

    It’s the simplest idea in the world, if a company’s outgoings are more than it’s income then how is it going to generate profit for the shareholders? How did no one think of this?

    • HAL_9_TRILLION@lemmy.dbzer0.com
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      2 days ago

      The stock market doesn’t work like this anymore and hasn’t for several years… maybe decades. Share price is completely decoupled from fundamentals. The way you make money for shareholders is by getting the stock price to go up and what the actual company does or doesn’t do is not particularly a consideration anymore.

      I go one step further and say that I personally believe the market itself is rigged, has been rigged since just after 2008. It is fully under control by dark pools, algorithms, HFT and AI. We will never again see an appreciable crash in the market, just things which vaguely resemble “normal” market action as the overall line continues to go ever upward.

      The stock market is now fully a money-generating machine for the Epstein class. I have been saying this since about 2014 when I read Flash Boys by Michael Lewis and the Dow was at 18,103, Nasdaq 4,773. Even today with this news, the Dow is up currently 72 at 51,564 and the Nasdaq is up 496 at 26,517.

      • qevlarr@lemmy.world
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        1 day ago

        No more crashes? That’s something you would hear just before the biggest crash in history. Don’t kid yourself. You’re right that the stock market is completely divorced from actual economic activity of the companies listed, though

        • HAL_9_TRILLION@lemmy.dbzer0.com
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          16 hours ago

          Every time I say this I get this comment or one like it… since 2014. I invite you to save this thread and come back and make me feel like a complete moron when it happens. Eventually, I think everybody will come around.

          Edit: I started to come to these conclusions when I read the book I mention above - it’s more than 10 years old now. I’m not alone in thinking these kinds of things, the book’s author does as well

          • qevlarr@lemmy.world
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            1 day ago

            I happen to have read that book at the time. It doesn’t say no more crashes. Has nothing to do with the overall trend in the stock market, even. “Stock market is rigged” he’s referring to a specific part when you place an order, it happens in milliseconds. That’s something else from valuations being inflated or no more crashes

            • HAL_9_TRILLION@lemmy.dbzer0.com
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              16 hours ago

              Yes, that’s all true. I would temper that by saying if you can rig orders with front loading the way the book described ten years ago, the end game is not to make the market less predictable and more chaotic. The people architecting this stuff have now been working at it for over a decade.

              The no more crashes thing is my own extrapolation based on my personal experience watching them control the price of stocks that were shorted to oblivion using dark pools and synthetics along with the sudden subsequent rise of crypto-capital. I am aware that this brings me into conspiracy territory, but I’m also aware that nothing that has happened since 2008 has done anything but reinforce the notion in my head.

              Time will tell, I don’t mean to imply that no crashes is a given but I strongly suspect the entire market is price controlled using all these tools (AI, HFT, crypto, dark pools, synthetics) - and not just this market, but any market that allows these tools to be used.

      • FauxLiving@lemmy.world
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        2 days ago

        These giant IPOs result in the companies being a larger part of index funds, which results in a huge influx of retirement funds and other ‘low risk’ investment funds that hold the index funds.

        It’s basically fake it until you make it, once you’re a major part of an index your company’s shares are automatically purchased by these massive funds and that stabilizes the stock’s price at some arbitrary point (minus the insider short selling and other market manipulations).

    • frongt@lemmy.zip
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      2 days ago

      The idea is that it will eventually be profitable, and investors will make their money back several times over.

      Obviously, that does not seem to be the case in reality.

      • stringere@sh.itjust.works
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        2 days ago

        As long as the stock has value n the market, the Epstein class can borrow against their stocks.

        This is why they’re always clamoring for lower interest rates. It has nothing to do eith helping people with mortgages and everything to do with the Epstein class abusing the carried interest loophole to maintain their work free lifestyle.