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3/11/08

WMail ezine: The Stock Market Casino

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The Stock Market Casino

The original design of the Stock Market was purely Capitalist in intention: to provide a means for business people – entrepreneurs, inventors, developers – to obtain needed investment capital, to start or to expand their business enterprises. Stock offerings were set up, bankers and other investors bought the stock, the businesses made use of the invested monies, and once an enterprise was flourishing and producing a profit, the borrowing entity bought back the outstanding stock, so that the capital could be utilized by other enterprises.

This last part of the design has largely been forgotten, since brokers quickly realized that they could make lots of easy money in trading shares back and forth. They became middlemen, in charge of the pipeline of Capital, exacting their levy on each and every transaction. Any repayment of the investment would eliminate the possibility of a levy by the brokers. The game was soon no longer about Capital, and every concern of the Stock Market became centered on traffic-flow.

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