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A comment on Paul Singer, Doomsday Investor. Parent comment

Re:Paul Singer, Doomsday Investor by bawana on Tuesday August 21, 2018 @09:33PM (#17815512)
Well, the importer who would have spent his money on the fans now spends it on something else. The Finance bucks are now recirculated into the REAL economy.
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Re:Paul Singer, Doomsday Investor by icebraining on Wednesday August 22, 2018 @04:12AM (#17817157)
They don't have that money to spend, because that money came from the sale of the previous fans, but now it's the investors that are selling them.

Before: Importer spends $100 to buy the fans, spends $10 to ship, gains $150 from sale. Net: $40

Now: Finance guys spend $100 to buy the fans, pay $50.01 to the importer to ship them, then sell them for $150. Net (for the importer): $40.01. The finance guys are down $0.01, but they get Real Bucks from that.

The real economy gained a mere penny. It just added complexity to the whole thing, for no real gain.

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