277
This Is Biden’s Soft Landing, and He Deserves Some Credit
(newrepublic.com)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 19 Nov 2023
277 points (86.7% liked)
politics
19135 readers
1132 users here now
Welcome to the discussion of US Politics!
Rules:
- Post only links to articles, Title must fairly describe link contents. If your title differs from the site’s, it should only be to add context or be more descriptive. Do not post entire articles in the body or in the comments.
Links must be to the original source, not an aggregator like Google Amp, MSN, or Yahoo.
Example:
- Articles must be relevant to politics. Links must be to quality and original content. Articles should be worth reading. Clickbait, stub articles, and rehosted or stolen content are not allowed. Check your source for Reliability and Bias here.
- Be civil, No violations of TOS. It’s OK to say the subject of an article is behaving like a (pejorative, pejorative). It’s NOT OK to say another USER is (pejorative). Strong language is fine, just not directed at other members. Engage in good-faith and with respect! This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban.
- No memes, trolling, or low-effort comments. Reposts, misinformation, off-topic, trolling, or offensive. Similarly, if you see posts along these lines, do not engage. Report them, block them, and live a happier life than they do. We see too many slapfights that boil down to "Mom! He's bugging me!" and "I'm not touching you!" Going forward, slapfights will result in removed comments and temp bans to cool off.
- Vote based on comment quality, not agreement. This community aims to foster discussion; please reward people for putting effort into articulating their viewpoint, even if you disagree with it.
- No hate speech, slurs, celebrating death, advocating violence, or abusive language. This will result in a ban. Usernames containing racist, or inappropriate slurs will be banned without warning
We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.
All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.
That's all the rules!
Civic Links
• Congressional Awards Program
• Library of Congress Legislative Resources
• U.S. House of Representatives
Partnered Communities:
• News
founded 1 year ago
MODERATORS
No one is going to lend you money at an interest rate lower than the deflation rate, ever.
Every stock purchase is an investment in a company, always. That's literally what you're buying
The money then gets spent, which does not happen under your mattress.
You've got some very foundational aspects of this entire process quite wrong.
Why wouldn't they lend you money at 1% when the deflation rate is 2%? Their money is worth 2% more plus they get 1% more from you.
Not every every stock purchase is an investment in a company, because you're buying off someone who is not the company. The company doesn't make that money. It's kind of like used sales vs new sales. Again, only when the company issues new shares or does an IPO do they make money off stock sale.
If I buy a stock and sit on it, that's essentially money sitting there. Whether it's cash or a digital record claiming I own X number of shares in a company, it's not doing much.
If I've gotten foundational aspects of this process wrong, you've yet to demonstrate how.
There are only a set amount of shares. Shares being in demand increases their price. I am sure you can see him w this does financially benefit the company.
Yes an IPO is when the most stock is sold, but new shares happen all the time. It's disingenuously pedantic to suggest purchasing stock is not an investment in a company, by both literal and figurative definitions.
Sure, bud, in a regulated market without exemptions for market makers who can naked short sell (crate synthetic shares that do not exist) for the sake of liquidity. Or how about 90% of our market being traded off the tape without affecting prices?
He is pointing out past ipo you are speculating on growth, which is what trading is speculation, not guaranteed returns.
GameStop ruined the brains of a generation
Gamestop pointed out unfettered greed in the market that's supposed to determine the health of a society. While conviently pointing out the flaws in all our regulatory processes surrounding that market. It fucked the business plan of wall street, not anyone's brain.
Yeah wall streets really hurting. For sure.
Purchasing stock off a secondary exchange is about as much investing in a company as purchasing a used game and hoping to resell it for a higher price. The company gets no money from these transactions. It's just glorified gamblers making money.
That's a gross over simplification to the point of being untrue. Besides the obvious facts that many companies continue to issue new shares on a regular basis, companies absolutely care about their stock prices for a variety of reasons, and not just so stockholders make money.
Start here if you really want to know more about how a company leverages its stock price, even when not selling more shares at the moment.
https://www.investopedia.com/investing/why-do-companies-care-about-their-stock-prices/
https://www.usatoday.com/story/money/columnist/krantz/2012/10/14/falling-stock-price-hurt-investors-company/1624761/
https://fairmontequities.com/how-does-a-decline-in-share-prices-affect-companies/
Not that often really, because shareholders can vote on those propositions and they generally would rather open a short position and gain back their investment then speculate on future growth prospects that are looking shaky needing more investment. More common in massive companies, you see share buybacks to entice big investors with the allure of we are doing well so we will buy back shares periodically to raise your investment. They do it enough and eventually as an investor you know they are going to offer more shares at some point so that control of the board does not become too consolidated, start a short position at that point wait for the next bottom and buy in before the next buyback to play both sides.
Except stock price is based on a number of factors and does not necessarily match demand.