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A comment on What Economists Still Don’t Get About the 2008 Crisis. Parent comment

Re:What Economists Still Don’t Get About the 2008 Crisis by nickik on Monday July 30, 2018 @03:37PM (#17647306)
No it wouldn't. Everybody could be a passive investor and the economy and your portfolio would just continue to exist.
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Re:What Economists Still Don’t Get About the 2008 Crisis by mi100hael on Monday July 30, 2018 @08:21PM (#17649502)
Passive funds are priced based on the activity of active investors trading underlying securities.
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Re:What Economists Still Don’t Get About the 2008 Crisis by coltonv on Monday July 30, 2018 @09:50PM (#17649926)
I don't think he's implying that literally everybody trades passively, of course Zuckerberg is going to actively trade his Facebook shares, I'm going to actively trade my stock options at Public Company X, the guy down the street will still rent his house out instead of selling it and investing passively.

Plus, it's not like passive investing causes securities to never be traded, when I buy into a mutual fund I'm buying stock from someone. That someone is probably retiring and selling their securities.

Lastly, most "active traders" just buy a bunch of Blackrock/Vanguard/SPDR index funds anyway and call it a diversified portfolio that only they could deliver.

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Re:What Economists Still Don’t Get About the 2008 Crisis by nickik on Tuesday July 31, 2018 @10:51AM (#17653614)
There would be a price without the constant underlying activity as well. This is basic financial economies.
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