> there is little difference between the stock market, prediction markets and horse betting. I just don't believe speculation is necessary to a healthy economy
The speculation I’m describing is entrepreneurship. That is the core risk taking that makes market systems competitive. To the extent stock markets support that, they’re socially useful. (In America, liquid stock markets support liquid private markets that support entrepreneurship pretty directly.)
> it takes remarkably little for things to go horribly wrong, and we ought to address that somehow
I’d argue the opposite. The economy is doing remarkably well given we’re at war (kinetic and trade) and just getting over Kristi Noem.
The speculation I’m describing is entrepreneurship. That is the core risk taking that makes market systems competitive. To the extent stock markets support that, they’re socially useful. (In America, liquid stock markets support liquid private markets that support entrepreneurship pretty directly.)
> it takes remarkably little for things to go horribly wrong, and we ought to address that somehow
I’d argue the opposite. The economy is doing remarkably well given we’re at war (kinetic and trade) and just getting over Kristi Noem.
That aside, I suspect the problem is leverage.