tag:blogger.com,1999:blog-7458035823787759885.post6209147231986936657..comments2022-11-09T05:19:44.180-05:00Comments on Another Footnote to Plato: Is the Stock Market a Ponzi Scheme?Unknownnoreply@blogger.comBlogger9125tag:blogger.com,1999:blog-7458035823787759885.post-24460219422755636782013-12-26T14:52:33.150-05:002013-12-26T14:52:33.150-05:00Sorry, I worded that poorly.
If there were no div...Sorry, I worded that poorly.<br /><br />If there were no dividends, then the analogy would apply. <br /><br />I think there are plenty of interesting questions regarding the role of the rentier class in society. I'm taking that as entirely given. <br /><br />I've wondered to what extent a different class of shares might emerge where the primary goal isn't to increase shareholder Samuel Gotihttps://www.blogger.com/profile/07700141552017540854noreply@blogger.comtag:blogger.com,1999:blog-7458035823787759885.post-4385852555362351132013-12-22T04:57:45.580-05:002013-12-22T04:57:45.580-05:00Hmm.. can you explain how the stock market is not ...Hmm.. can you explain how the stock market is not zero sum (other than the dividends)? <br /><br />Re: "isn't that what capitalism is all about?" <br />As someone who grew up in the former Soviet Union, I can assure you that it unquestionably is. <br />Benhttps://www.blogger.com/profile/14392657676100237874noreply@blogger.comtag:blogger.com,1999:blog-7458035823787759885.post-31509557779936629002013-12-20T12:02:45.023-05:002013-12-20T12:02:45.023-05:00@Ben Weisburd
I think the main difference between...@Ben Weisburd<br /><br />I think the main difference between the casino and the stock market is that the latter is considered an investment class while the former is not. So if the stock market was zero-sum (per your scenario) then it would fail to be an investment class. That would be the potential "deception" if you will.<br /><br />And the fact that the stock market isn't Samuel Gotihttps://www.blogger.com/profile/07700141552017540854noreply@blogger.comtag:blogger.com,1999:blog-7458035823787759885.post-88620061977435833122013-12-20T11:05:01.474-05:002013-12-20T11:05:01.474-05:00Thanks for the simple explanation - have always th...Thanks for the simple explanation - have always thought there were some similarities, but never thought it through till now. I agree with Joshua that the key difference is the lack of deception about where the money goes when stocks are bought - either during an IPO or in the open market. You ask - does the lack of deception really matter? For me the answer is clearer with a better (if heavily Benhttps://www.blogger.com/profile/14392657676100237874noreply@blogger.comtag:blogger.com,1999:blog-7458035823787759885.post-53562419251189934432013-12-19T08:16:56.675-05:002013-12-19T08:16:56.675-05:00This comment has been removed by the author.Benhttps://www.blogger.com/profile/14392657676100237874noreply@blogger.comtag:blogger.com,1999:blog-7458035823787759885.post-1528162117121452072013-12-19T08:15:16.814-05:002013-12-19T08:15:16.814-05:00This comment has been removed by the author.Benhttps://www.blogger.com/profile/14392657676100237874noreply@blogger.comtag:blogger.com,1999:blog-7458035823787759885.post-16546827545356081512013-12-18T09:36:33.612-05:002013-12-18T09:36:33.612-05:00Exactly ! This is a wonderful and informative webs...Exactly ! This is a wonderful and informative website.It is a very useful for us. So, I like it very much. Many many thanks for make this website. If you want more informastion about stock screener to visit <a href="http://www.seekingtechnicals.com/" rel="nofollow"> stock screener </a> The Stock Screener features can include find specialized along with relative provider records for any mark and Anonymoushttps://www.blogger.com/profile/18123930448147815431noreply@blogger.comtag:blogger.com,1999:blog-7458035823787759885.post-9462981118546681282013-10-26T13:09:35.560-04:002013-10-26T13:09:35.560-04:00Hi Joshua, thanks for the reply.
What I'm doi...Hi Joshua, thanks for the reply.<br /><br />What I'm doing is relying on a sort of metaphor. Metaphors tend to be similar in certain respects but break down in others. I'm focusing on one essential feature of ponzi schemes: new investors paying for the profits of older investors. <br /><br />You're certainly correct to point out that having that feature, while <i>necessary</i>, is notSamuel Gotihttps://www.blogger.com/profile/07700141552017540854noreply@blogger.comtag:blogger.com,1999:blog-7458035823787759885.post-37036559053086517192013-10-25T13:34:30.505-04:002013-10-25T13:34:30.505-04:00your explanation needs a lot of work. by your ex...your explanation needs a lot of work. by your explanation a stock that has no intention of ever paying a dividend would be a ponzi scheme, which is not correct (in fact there are large #s of other examples whereby the only exit strategy *is* price appreciation, but yet are in no way ponzi schemes). A ponzi scheme generally has several features which distinguish it 1) misappropriation of jfhttps://www.blogger.com/profile/01659463232609884552noreply@blogger.com