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Musicmystery -> RE: The myth of endless economic growth (3/24/2012 10:16:46 PM)
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quote:
ORIGINAL: MrBukani
quote:
ORIGINAL: Musicmystery
You keep jumping to futures. Of course futures are speculative.
You're trying to make speculation investment. It isn't.
Uncle Harold wants to open a corner store. He has half the money. You give him the other half and earn half the proceeds.
Congratulations. You're a stockholder.
I am just waiting for a link that says I cant buy futures on any business not just commodities, and maybe currency is a commodity.
Do you want the rest of the world to gamble on your losses with the allmighty dollar?
Fine. Don't buy futures.
What's the problem here?
quote:
ORIGINAL: Musicmystery
You keep jumping to futures. Of course futures are speculative.
You're trying to make speculation investment. It isn't.
Uncle Harold wants to open a corner store. He has half the money. You give him the other half and earn half the proceeds.
Congratulations. You're a stockholder.
One day, you decide to retire to Kenya, and you want your half of the business. Fortunately, your Great Aunt Petunia is looking for a good investment. You all sit down and work out just what the business is worth these days now that it's grown so. When you arrive at a figure, she writes you a check.
Congratulations. You both just participated in a stock market.
[yes, these are private sales, but that's the concept]
See? No futures contracts. Just business investment.
What you're insisting on is like saying all purchases are like buying a chance at the roulette wheel, ignoring that people also spend their money at the grocery store and not at the casino.
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