Forum Post: it ain't like it was in the old days

In the summer and early fall of 1929, Wall St was booming and president Hoover was taking all the credit. The question I want to pose is: What do the price of stocks and Wall St profits really mean? Do they indicate the superiority of Capitalism over Socialism?

An IPO raises money for establishment or expansion of some business enterprise. It may or may not produce a material product or useful service. That's not the point, though it is something to think about. Subsequent stock issues also raise money that's, presumably, invested in a business. Such Wall St transactions may or may not contribute to the real economy of production, distribution and consumption of material goods and services. But that's only the smallest part of what goes on in Wall St. trading.

The subsequent trades and price increases of stocks originating in IPOs or other stock issues, invest nothing in the real economy. They make something our of nothing. Yet that pyramid scheme, like the real estate Ponzi, is responsible for the prices and height of the indices that everyone thinks indicates the health of the economy and the glorious victory of the Wall St Oligarchs over Socialism. ??????

When are you morons going to wake the fuck up?