tag:blogger.com,1999:blog-4740849900073154554.post3540963159360484816..comments2023-08-25T17:30:36.937+05:30Comments on Business Musings: The moral dimension of the stock marketRameshhttp://www.blogger.com/profile/11782192840421019943noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-4740849900073154554.post-91339340062147654242009-07-03T15:00:46.960+05:302009-07-03T15:00:46.960+05:30Thanks Amit for visiting and commenting.Thanks Amit for visiting and commenting.Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-52258277226115707252009-07-03T14:16:05.946+05:302009-07-03T14:16:05.946+05:30Good explanation about stock market.
Finance Boo...Good explanation about stock market.<br /><br /><a href="http://www.financebookmark.co.cc" rel="nofollow"> Finance Bookmark </a>AMIThttps://www.blogger.com/profile/09271598940693313554noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-14631762557179537902009-06-09T05:58:10.852+05:302009-06-09T05:58:10.852+05:30@AJCL - yours is a very "experienced" co...@AJCL - yours is a very "experienced" comment - very few people actually "know" the stock market. I know the rewards relate to risk, but I am stuggling with its disproportionate nature. The economics is irrefutable. I am just struggling with the moral dimension - such thoughts come in old age !!Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-85162121334453276852009-06-09T05:54:17.418+05:302009-06-09T05:54:17.418+05:30@ reva and rads - Not sure if sitting on your back...@ reva and rads - Not sure if sitting on your backside is a manifestation of being "smart" :)<br /><br />@ Ajay - Very logical and beautifully argued comment. I completely agree with your economic rationale. My problem is with the morality. I have no problem with different professions yielding different rewards. I would argue that venture capitalists who back an idea and let a business be built must be rewarded disproportionately. But what about the "passive investor" or the punter. I don't grudge him his gains (or losses), but there is something that doesn't appeal to my "bleeding heart" to say by doing this, than by doing "productive work" you can earn a lot more. And I don't buy the argument that when market goes down the punter looses - governments always intervene when markets go down. Part of the reason why markets are going up is because governments world over have released incredible sums of money into the economy.<br /><br />Your comment has been one of the best ones I have receieved. Please comment more ! Or better still start blogging !!Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-8500710405166475762009-06-09T05:45:20.457+05:302009-06-09T05:45:20.457+05:30Much as i wanted to, i never got around to learnin...Much as i wanted to, i never got around to learning the intricacies of a stock market and its functionings.. and this post does warrant 'experienced' comments. With whatever little I know about the stock market, I feel its rewarding the hugest risk taker, i feel taking a calculated risk is an art..to be able to know which button to push requires a lot of thinking.. so i guess its only right to reward it that way. - AJCLAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-55282450415156568462009-06-09T03:15:20.959+05:302009-06-09T03:15:20.959+05:30I second reva on this, the smarter you are the mor...I second reva on this, the smarter you are the more you earn by relaxing.Rikahttps://www.blogger.com/profile/03985152186939344611noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-87715247361715544062009-06-09T02:29:03.823+05:302009-06-09T02:29:03.823+05:30huh!! all abt working smart versus working hard!!!...huh!! all abt working smart versus working hard!!! I say!!lafemmerevahttps://www.blogger.com/profile/16289880109541057584noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-24402089060690185462009-06-08T20:08:18.825+05:302009-06-08T20:08:18.825+05:30Hi Ramesh! This post, once again, incited me to co...Hi Ramesh! This post, once again, incited me to comment back :)<br />I think, as do you, that the financial markets are as fair and as perfect a manifestation of a market as can be. It's purely driven by demand and supply and intrinsic value of the goods. Of course, there are some deviations from the normal due to speculative action. The reward for sitting on your derriere and doing nothing while the market shot up 50% is directly proportional to the penalty that several people would have received during the nauseating dive of the sensex from 21000 to 8000 (and no, the retail investor does not get saved by the government because he's already been stopped out of the market with rising margin calls. It's the big investors that benefit from the bailout packages and I too agree that that's not the way it should be. Hence, antitrust measures). So in a way, it's about being in the right place at the right time - which extends to not just financial markets but anything and everything in life. About working your socks off and making less money - the same holds true even for migrant labour across India. They work certainly harder than most of us. Be it rain, sun or fog, they need to make their daily wage if they have to sustain themselves and their families. So, why crucify the traders / investors for something that is inherent in a non-utopian society? It's not like the top management of the former bulge bracket banks didn't know what sub prime lending practices were going on. Only when the crap hit the fan, they needed a scapegoat - the traders.<br />About the economic booms and busts, that's the way economies behave. Booms and slowdowns are inherent. And the stock markets over reacting to them is also natural. As long as mistakes like subprime crisis and mismatching of incentives and targets is not repeated, the natural booms and slowdowns of the economy can be survived. And let the risk takers take the risk and be suitably rewarded or punished - as the markets see fit.Ajayhttps://www.blogger.com/profile/04647172666763982533noreply@blogger.com