stock market

What is the stock market?

The people who created Facebook and Google must be smart. They’re billionaires, their companies are worth multi-multi billions, their programs are used by billions around the world.

(ZHE) — Dow crashed over 1000 points today…. All 2018 gains are gone… Time for “Markets In Turmoil” special… Markets “turmoiled” again today as Treasury yields spiked on a weak auction and the implications of a budget deal that means more supply is coming. This spooked stocks once again and XIV, the Inverse ETF, tumbled at the […]

(COMMONDREAMS) — Bucking the wisdom of his predecessors—who operated on the knowledge that stock prices go up and down, all for a variety of reasons—President Donald Trump has not been shy about taking personal credit for the recent highs of the stock market, but with Monday’s historic drop on Wall Street the president has many people wondering if he’ll […]

Friend of the show JP Sottile joins me in the first hour for an in-depth discussion about the recently passed tax reform bill in the House. We talk about what this reform package is promising and what the possible outcomes may actually be. JP discusses how this will ultimately benefit the richest of the rich in America, while most likely punishing the rest of the nation. We analysis the GOP’s strategy with pushing this wildly unpopular bill. JP and I discuss the idea that this may be part of a longer term strategy of ousting Trump from power.

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Walmart's true wealth is in the real assets: the buildings, shelves, shopping carts, and all the rest. The customers and employees use the parking lots, transport purchases in shopping carts, check out using bar code scanners. In this sense, Walmart’s employees and customers hold the wealth.

When it comes to the oil sector (as in others), additional government interventions only cause unintended consequences. Using the threat of Strategic Petroleum Reserve withdrawals to limit “price gouging” and “profiteering” only cripples the ability of the market to anticipate and mitigate supply disruptions.

The monetary illusion of inflated prices must evaporate. Returns will fall short of expectations, firms will liquidate investments, shedding jobs. The boom turns into a bust. Then the central banks rush in to lower interest rates and pump in new money. The economy gets trapped in the boom-and-bust cycle.

All an inside trader does is act on private information that more accurately reflects the future value of a financial asset than the current price does. He buys or sells that asset at a price that someone else voluntarily accepts. He does nothing that damages the ultimate value of the asset. Nor does he hurt the broader financial marketplace. If anything, his trading slightly pushes the asset price toward a more appropriate value. What's wrong with that?