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At 12:18 AM 8/28/00 -0700, Riccardo wrote:
>"ARE SPECULATIVE STOCK MARKETS USEFUL FOR ANYTHING?"
>
>by Damian H. Zanette
>Centro Atomico Bariloche
>
>
>This conclusion raises immediately the question in the title of this note.
>What is the speculative stock market useful for? Brokers, who may make money
>even when stocks fall, would not have problems to answer. However, it is
>surprisingly difficult to find a serious answer to such an elementary
>question in the literature. Only the most enthusiastic supporters of
>capitalism seem to agree that "because a booming capitalistic economy
>requires large accumulation of investment capital, a market of capital was
>developed as well... It was the capital obtained in these (stock) markets
>that dug the mines and built the factories of the industrial revolution and
>which continues to this day to make the capitalistic societies productive
>colossuses" [5]. In the light of what econophysics teaches us about stock
>markets, such assertion is hard to grasp. Would the whole industrialized
>world have got its financial resources from an essentially random system,
>able to develop catastrophic fluctuations within a few hours?
Yes, Virginia, Stock Market does provide money to dig the mines. Look at
India. They have more gold in the ground then all world banks together. But
that capital does not "dig the mines". As of speculators, they provide
liquidity. Would any one buy the stock if to sell it you need a written
permission from Hillary Clinton?
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