• Phoenixz@lemmy.caEnglish
    0·
    11 days ago

    Same goes for Tesla, it’s severely over bloated even if it’s bubble has shrunk a bit.

    These sort of bubbles should be stopped by the government but why stop that if the politicians themselves are the ones having pumped millions into these bubbles?

    First you gotta make a law prohibiting politicians from having stocks, then watch how fast this problem gets resolved

    • AA5B@lemmy.worldEnglish
      0·
      11 days ago

      Why should they be stopped by the government? That assumes the stock market should be logical and predictable but why should that be true? It’s all speculation, just a step above gambling, and people should be allowed to.

      Tesla is a great example. Its stock has never been at an expected level for their revenue or profit. It’s all speculation about their potential to disrupt the car market (which they have), and predictions like 50% growth per year. Even now, self-driving and artificial intelligence seem a bit far fetched to most of us, but if they happen will be very disruptive.

      But yes , politicians should have required ethics standards, including banning insider training. The rest of us have to: how does it make sense for our leaders to have lower ethical standards than everyone else?

        • AA5B@lemmy.worldEnglish
          0·
          11 days ago

          Maybe, but hopefully the existing controls will prevent that from happening again …. Unless overzealous attempts at “reducing regulations” break those. There were quite a few factors around the Great Depression but consider controls like:

          • “circuit breakers”, automatically halt trading when a stock or the overall market drops too quickly
          • “qualified investors” are criteria you must meet for the riskiest investments, basically that you can handle the loss
          • bank requirements for capital, risk, so less likely to collapse
          • bank rescues - Lemmy likes to complain about rescuing banks instead of people, but bank collapses during a crisis are what can push the crash off the deep end

          Also the overall size and complexity of the modern investment industry should make it much less likely for any one type of investment to drive a general crash.

            • AA5B@lemmy.worldEnglish
              0·
              10 days ago

              None of them have come close to the severity of the Great Depression. We’ll never control all instabilities, the important part is limiting their severity

              Yes, I’ve been affected by several of these. I’ve gotten laid off during downturns. I’ve been affected by high interest rates. I’ve been affected by unattainable housing. But at least it wasn’t worse

                • AA5B@lemmy.worldEnglish
                  0·
                  9 days ago

                  And yet this is a place where centrism is the goal.

                  • We know that trying to tightly control economies does not work. At all. We shouldnt even try.
                  • We also know that corporate-anarchy serves only robber barons. That’s not acceptable.

                  So yes, the best answer is to give the market freedom but not complete freedom. To let it do its ups and downs … within limits. To combine the strengths of capitalism with the guardrails of a guided market. Where the capitalist driven market does not serve society, it’s a failure to guide the market so capitalism fulfills desirable goals