Re:America's advanced manufacturing problem and how to fix it
by RandomLensman on Sunday September 17, 2023 @07:35AM
(#37543917)
The money is not siphoned out of the economy (unless it all leaves the US/World). The money made in finance is just as any other money, i.e., it is used to consume, invest, save etc.
Btw., no-one is forced to trade incessantly, either.
Re:America's advanced manufacturing problem and how to fix it
by stouset on Sunday September 17, 2023 @11:54AM
(#37546409)
The money technically being “in the economy” is cold comfort to the workers whose COL has steadily increased while wages have remained flat.
On some level this is true, but the insane quantities being siphoned out of the economy through the financial system is wildly disproportionate to the increasingly-infinitesimal gains in “price efficiency”.
As a long-term investor in the market as a whole, whether Apple’s true per-share value today is 175.01 and not 175.07 is almost completely irrelevant. Even less so the difference between 175.008913 and 175.008916.
We have long since passed a point where there is sufficient liquidity and sufficient price discovery for the purpose of buy-and-hold investment, and every extra dollar that goes to financial services in the name of more accurately determining prices is just a transfer of money from people who provide value to the economy to a class of leeches who provide nearly nothing.