Friday, September 09, 2011

Stock Market Rant

i am very skeptical of The Stock Market.
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If i were king of The World,
i would outlaw it immediately; and restructure a new mechanism for funding new businesses & such.
It makes all The Sense in The World for you to Invest in Your Neighbor’s New Idea for a Perpetual Motion Machine, but once S’he sells enough units to start turning a profit, S’he should buy back all The Stock you bought, and reinstate unambiguous control of The Company.
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i can not understand why Huge Corporations still have stock floating around amoung The Damp Masses.
It might make sense for The Employees of The Company to Own Part of The Company,
But that should be Automatic, without going through The Motions of Choosing to Buy into The Company. Every Employee by The Fact that they are An Employee is A ’Natural’ Investor in The Company.
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But i digress.
What most annoys me is ‘Stock Market Players’ buy & sell, sell & buy stock all day, Occasionally ‘Making’ or ‘Earning’ huge dividends.
Granted; Even amoung The Players that are any good at this,
Aren’t very good at this.
But in Theory; When A Stock Market Investor Wins The Jackpot—
What have they contributed To The Gross National Product?
What Product or Service have they Added to The Economy?
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Obviously : Nothing.
So where does their new income come from?
It comes from The Other Poor Bastards that Thought that they were going to hit The Jackpot, but got cold feet, Panicked when their stock fluctuated, or Ran when they thought that they heard some pots & pans falling in The Apartment next door.
The Stock Market is Purely A Lottery, In which The Cool & Staid sit patiently and follow The One & Only Rule to Win in The Stock Market.
Newer Sell your Stock when it’s lower than when you bought it.
When everyone else is Selling, You Buy.
When everyone else is Buying, You Sell.
It’s quite amazing that so few ‘Investors’ understand these rules.
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But i digress.
What really brought me to The Rant File today is An Idea for —
A Wonderfully Simple Experiment.

Feed The Business News Programs Completely Random Stock Figures.
That is; if Bell Telephone is Selling today for $42 a share,
Your Computer program creates a Random Number to it’s Value so that The Business Analysts will think it’s selling for $12 a Share.
It might just as easily been assigned $239 a Share.
My prediction is that The Analysts won’t suspect The Slightest Shenanigans are Being Poured on them, As they are well aware that The Stock Market Fluctuates Wildly from Day to Day, and Will further Rationalize how these Values are Fitting Perfectly with The Daily News.
What is more; The Winners & Losers in The Stock Market will blithely Trade on these bogus figures, buying & selling with The Same Enthusiasm & Trepidation as they Always have, and No Noticeable Effect will incur upon their general Value.
This is somewhat Counter-Predictive, As i have just suggested that The Calm will win over The Panicky, So that with Random Information Hedging their Motivations, The Results should also be Random.
But what i am also suggesting is that It’s All Random, All The Time.
The Winners are The Rich, who, After losing their Daily Allowance, are able to keep playing until they Win Again,
While The Poor are Wiped out when They Lose, Extracting them from The Game.
Prudent ‘Trading’ may give The Rich a Slight Edge,
But The Most egregiously imprudent Trafficking of ‘Securities’ will yield a Jackpot Occasionally.
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Organizing such an Experiment would be substantially less complicated than The 911 Hoax, which makes me suspect that it’s already being performed by Some Mischievious Millionaire, and we are only left to wonder;
How long has this Experiment been running?

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