So Trump’s declaration of wanting the stock market to crash is a coded phrase to make the rich lose? Trump wants to suck the rich dry!
M->C->M
When the stock market crashes, those with the lion’s share of money in the system will take their money out and convert it into other capital. Maintaining their competitive edge over markets that are actively growing value.
Meanwhile C->M->C
Those who have stocks in order to afford bills when they retire will take the brunt of the blow, since they can’t freely remove their capital from the stock market due to legal restrictions on how their money can flow through the system. The ones who will lose the most are those who are currently retired and have no choice but to eat the losses without any recompense.
When the stock market crashes, those with the lion’s share of money in the system will take their money out and convert it into other capital.
They sell low? I don’t think so.
We should unrich them
I wonder what might cause the trend to turn in one direction or another. For example, if 8% of equities are owned by one group while the other 92% are owned by another, then I suppose I’d expect both “shares” to grow proportionally to one another. In other words, if the market as a whole gains 50%, then I’d expect the ratio of shares owned by each group to remain stable… the only thing I can think of that might explain the difference in outcomes is perhaps a difference in portfolio composition, which could reflect a gap in investment preferences, or perhaps some opportunities are available to one group while excluding the other. Seems likely to be a mix of the two.
most ordinary folks investments are in retirement and older generations have been able to fund their retirement better than newer ones. older generations have to sell (or die and its sold usually because the kids need like a house or such). Rich folks never really have to sell, even if they are not working they get more than enough in dividends even if they are not paying a lot atm due to their massive stock amounts to begin with. Further they are more likely to buy more stock with dividends than regular folks.
The rich get interest while the poor get debt. Tale as old as time tbh
