Re:Was whole economy a Ponzi scheme?
by dhughes on Thursday January 01, 2009 @02:59PM
(#416622)
Well yeah, sort of.
If you think about it what is stock, you pay $10 for a share that someone else paid $5 for, pretty much just because of rumours the company may do better in the next month or year, it's like buying air.
At least with commodities it seems like there is something material behind that contract; grain, oil, sugar. It's not like one day people will suddenly decide, or could be capable of deciding, to cut out sugar.
If you think about it what is stock, you pay $10 for a share that someone else paid $5 for, pretty much just because of rumours the company may do better in the next month or year, it's like buying air.
At least with commodities it seems like there is something material behind that contract; grain, oil, sugar. It's not like one day people will suddenly decide, or could be capable of deciding, to cut out sugar.