this post was submitted on 01 Feb 2025
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chapotraphouse

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[–] merthyr1831@lemmy.ml 2 points 14 minutes ago

The market is no longer controlled by "rational investors" or capitalists. The market is controlled by computer systems automatically trading small amounts of shares but across millions of servers, almost semi-collaboratively working to ensure the endless growth of their assets.

They're even steeled against panic-selling because they don't usually have knowledge of news like this, that would encourage even a hardened trader to divest in the long term. Nope, keep the diamond hands and let others jump in on the growth train!

Even when errors combine into freak events like flash crashes (which have happened in 2010 and 2018, for example) these systems can very quickly reinvest liquid assets and cooperatively inflate the market back to where it's expected. Even in 2020 the market rebounded within like a year, compared to 4+ in 2008!

These investor types will never understand that the market does not have a "floor" anymore, it won't ever hit zero. It'll keep inflating itself indefinitely as it becomes more and more alienated from our material conditions.


My absolutely unfounded and uneducated opinion is: One day we'll be past the point of a "crash", instead we'll see the market get so absurdly disproportionate to the reality on the ground that it will tear itself apart trying to attain growth in some kind of inflationary spiral.

[–] edge@hexbear.net 23 points 17 hours ago (1 children)

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.

[–] merthyr1831@lemmy.ml 2 points 11 minutes ago

If Tesla's stock crashed from Elon divesting to pay taxes, the cost of upkeeping USAmerican infrastructure would plummet without the global production of 10-tonne kampfwankeurwagens.

[–] QuillcrestFalconer@hexbear.net 24 points 18 hours ago (1 children)

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

[–] Abrinoxus 10 points 17 hours ago
[–] Cimbazarov@hexbear.net 37 points 19 hours ago (2 children)

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.

[–] LocalMaxima@hexbear.net 28 points 18 hours ago

Tesla is completely divorced

and people say the ceo doesn’t contribute anything

[–] GreatAlbatross@feddit.uk 5 points 16 hours ago

I still remember when the stock split happened, and somehow re-reached the previous price within days.

[–] bobs_guns@lemmygrad.ml 18 points 18 hours ago (1 children)

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.

[–] piggy@hexbear.net 25 points 18 hours ago* (last edited 18 hours ago)

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.

[–] Parzivus@hexbear.net 11 points 17 hours ago

Because their CEO is the president's personal advisor now? Obviously? I guess JP Morgan can't just say "corruption lol" but come on