How much money is played
in the stock market?
Well, the roughly 10 billion dollars
"played" every day
in the New York Stock Exchange is a quantity which
exceeds our imagination, because it is entirely beyond
our everyday measure of comparison.
If we want to get a "feel" for this
amount of money,
we need to compare it to massive economies.
For example, with the economic strength
of a big industrial country like Germany.
, the gross
national income of Germany for the
whole year 2010 was $ 3.537 trillion.
If we divide this amount by 365, we have
a daily gross national product in Germany
of about $ 9.7 billion.
Now comparison is possible
In the New York Stock Exchange as much money
is "played", as is the entire gross national income
of the fourth largest economy in the world.
The same happens every day
in Frankfurt, London, Tokyo and
all the other market centers.
The questions now posed by the common man are:
• Where is this money?
• Why don't I see it?
• Why does this money increase daily,
while mine decreases?
• Why do I get the impression that the others
around me also have less and less money?
• Why do I constantly hear that the market
has no money to do business?
You already know the answer of course.
We have less and less money because
some others constantly get more.
Money is transferred from our pockets to their's.
This is the famous "money flow"
which is the basis of our system.
The money produced from
work of the majority who are becoming
steadily poorer is transferred through
the mechanism of the system to the
minority who become fewer yet richer.
So each of them possess amounts
reaching astronomical proportions.
The interesting thing now is that these people,
who have this money, don't need it.
It is money that at least for now is not needed by its owners.
If they needed it, for example to build a house
for their family,
they wouldn't put it in the stock market.
They would build the house.
Or, if they had no personal need, but they needed
the money as
an investment for increasing the production of their own company,
they wouldn't take it to the stock market either.
They would put it into their business.
These colossal amounts
which are moved around daily in the stock market
are capital that there owners do not need.
It is absolutely useless to them.
Nevertheless, they want to increase it by any
means possible so that they have more tomorrow
Only, unfortunately, they not know how to achieve this increase.
They can't think of a wise investment
that would secure this increase of capital.
And this is not because of a lack of imagination.
It is because there are no meaningful investments
any more, since no growth is possible.
Do you now understand their despair?
So they send their capital around the globe with
the speed of the Internet from one market to another,
in the hope of achieving somewhere a lucky break.
Just as the roulette players gamble their money in the casino.
Any idiot knows that roulette in the long run
leads to ruin.
These unfortunate sick people however refuse to see it.
They keep playing.
Just as our capitalists.
Don't we say?
"He is playing the stock market".