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Joined 2 years ago
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Cake day: June 24th, 2023

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  • The stock market will always be up and going up if people keep putting more money in it.

    Stocks represent all assets that can be sold and traded publicly. Although US infrastructure is crumbling, all the shit is still there.

    Times are hard but we still have obscene material wealth (for now, here is hoping climate change doesn’t reduce that too much). Ironically, stocks should have gone down in the pandemic cause of the productive capacity dropping but it didn’t cause a lot of cash was printed.

    For stock prices to tumble down and crash, people need to take their money out of it. That’s only going to happen if there is another economy that people prefer to put their money in (like China).

    So what is more likely to happen is we keep having stock prices go higher and higher, cause more and more money would be in circulation (so inflation). But our productive capacity could drop. So we could become much more poor, have little wealth all around, and go to the baker to buy 1 loaf of bread with $1000 price tag.

    TLDR: when your economy represents basically “everything”, it won’t crash unless human civilization crashes.