Re:Why is the stock market rallying when the economy is so bad?
by WalterBright on Monday May 11, 2020 @03:44PM
(#23146141)
The people who do invest in the market are providing the money that drives jobs and economic growth.
You can't separate the two.
Re:Why is the stock market rallying when the economy is so bad?
by aeturnum on Monday May 11, 2020 @04:38PM
(#23146754)
Why can't you?
The vast majority of businesses are privately held[1]. Those businesses hire most of the people and buy most of the goods. Even for companies that are listed on the markets, the majority of their financial assets come from doing business.
It's true that companies raise money on the public markets to expand and thus hire more people, but the idea that most economic activity happens there is false.
[1] https://www.forbes.com/sites/sageworks/2012/10/01/private-co...
Re:Why is the stock market rallying when the economy is so bad?
by WalterBright on Tuesday May 12, 2020 @01:06AM
(#23150749)
Big business doesn't work without a stock market, and big business is the engine that drives an economy.
Small businesses are the future big businesses.
Both are needed for an efficient, productive economy.
Various times countries have tried to prevent big business from operating, and always gave it up after a while.
We can go back and forth about how theoretical people could invest theoretical savings, but unless you have another source, it seems like the reality we live in is one where 90% of the country share 16% of the stock market. Whether that 90% have low savings (all of which are in the market) or better savings (little of which is in the market) - either way their financial health doesn't seem very tied to the market.