Libs love to say “you can’t just take all the money from the rich, it’s mostly stocks that would drop in value”. As if the stocks don’t represent the ownership of actual productive forces that will create value regardless.
In Musk’s case, it’s actually true. Most of his “net worth” is from overinflated stocks of a car company that has a tiny amount of the country’s automotive market share and makes shit cars that fall apart.
Maybe it had something to do with Elon trying to take control of the US treasury. Same reason stock went up when trump won. Pricing in the corruption
this
My theory is under capitalism we’ve raised a generation of failsons who were badly educated, but because of their wealth, have significant impact over financial markets. These failsons all want to invest in flashy things and Tesla/Musk is the perfect magnet for that. It’s a little idealist, but I feel you need to be idealist to explain why Tesla is completely divorced from its material reality.
Tesla is completely divorced
and people say the ceo doesn’t contribute anything
I still remember when the stock split happened, and somehow re-reached the previous price within days.
Stock prices are not a perfect reflection of real value. The price can easily be distorted by the beliefs of people with money, who can spend that money on Tesla stock to own the trans. This doesn’t translate to wider market dominance or profitability of Tesla’s bad products.
Stock prices are not a perfect reflection of real value. The price can easily be distorted by the beliefs of people with money, who can spend that money on Tesla stock to own the trans. This doesn’t translate to wider market dominance or profitability of Tesla’s bad products.
This is because capitalism is actually a bad price discovery mechanism for securities. In commodities markets corrections are quick because there’s a real input-output happening to the commodity. A security’s value is literally greater fool theory. You could rig a commodity market but you effectively need a near monopoly/monospony/cartel to do it over a long period of time. There is no “running out of stocks” because stocks aren’t used for anything. So there’s effectively no real floor for any security. This is exactly why they were able to do financial fraud for such a long time in 2008. The securities system crashes based on speculation and technicalities not realities, reality can help get it there but it’s not guaranteed.
Because their CEO is the president’s personal advisor now? Obviously? I guess JP Morgan can’t just say “corruption lol” but come on
