I've been reading financial histories. The manipulation and fraud to me are sideshows. Fundamental is the primordial speculative motive. This seems much more intrinsic to capitalism and its crises than overproduction or business cycle downturns.
On Mon, Apr 27, 2009 at 10:55 AM, Michael Perelman <[email protected]> wrote: > Historically, the stock market offered a seemingly efficient way to raise > funds, but at least as early as the early 17th century, the Dutch stock > market was involved in very modern schemes of speculation, manipulation, > anf fraud. For an entertaining view, read a contemporary report, > Confusiones de Confusiones. > > > On Mon, Apr 27, 2009 at 09:08:56AM -0500, Bill Lear wrote: >> I should know the answer to this, but the general purpose of the >> stock market is clearly not to raise new capital for businesses. >> >> What broader economic purpose does it serve? >> >> I've heard that stock price can be used to leverage loans for a >> company, and therefore it is an indirect means of raising finance, but >> this seems exceptionally dubious, as I would assume stock price is the >> last thing a lender would look at and would instead look at standard >> "balance-sheet" things (EBIDTA, existing debt, etc.). I this roughly >> correct? >> >> >> Bill >> _______________________________________________ >> pen-l mailing list >> [email protected] >> https://lists.csuchico.edu/mailman/listinfo/pen-l > > -- > Michael Perelman > Economics Department > California State University > Chico, CA 95929 > > Tel. 530-898-5321 > E-Mail michael at ecst.csuchico.edu > michaelperelman.wordpress.com > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
