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Kind of disturbing movie about money..

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  • Kind of disturbing movie about money..

    When I was younger, I wondered about the stock market. My little mind figured, if someone's making money, someones losing.

    After watching this movie, Im again wondering.. Whats true and whats a lie

  • #2
    Originally posted by rerod View Post
    When I was younger, I wondered about the stock market. My little mind figured, if someone's making money, someones losing.

    After watching this movie, Im again wondering.. Whats true and whats a lie
    What's a lie is that there is a fixed pie out there that everyone is fighting for.

    When you're little, you think that in order to win someone else has to lose. When you grow up, you learn the concept of win-win.


    As an example, consider that when you bought your computer, you gave up money to do so. To you, the computer was worth more than the money you paid (you profit from the exchange). But to the company, the money was worth more than the computer (they profit from the exchange). So in a business transaction, there was profit/gain on both sides. So who lost?? No one lost in the exchange, because it's not a zero sum game.

    Stocks are not a zero-sum game. Businesses build profits for their owners by providing valuable goods and services. As a holder of the common stock, you are part owner of the business, and therefore entitled to part of the profits. So someone can make a buck selling their stock to you, and you can enjoy stock ownership for years to come. Both parties can win.

    This holds true for other forms of investing as well:
    -bonds: company recieves capital for expanding their business, you receive interest payments
    -real estate: you recieve rent, tenant receives a roof over their head
    etc.


    But hey, if you want to pass up on the best performing investment of all time because of a conspiracy video you saw on YouTube, more power to you.

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    • #3
      Central banking and Fractional reserve banking tie in together, and when you learn about that...

      I'm still looking out for myself, so I will happily invest in stocks and bonds while possible. But when you deposit money in a bank, it really isn't yours anymore; and if everyone tried to collect on their cash they would be short by 90% of more. It's quite scary.

      I understand people wanted a system that allowed for faster exponential growth, but that's not sustainable on a planet with finite resources and energy, and space.. and a delicate eco-system.

      It doesn't change anything knowing this in the immediate future, as the odds that a bank run would happen to enough banks for it to crash the system are very unlikely. Just be careful.

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