• chuckleslord@lemmy.world
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    10 months ago

    M->C->M

    When the stock market crashes, those with the lion’s share of money in the system will take their money out and convert it into other capital. Maintaining their competitive edge over markets that are actively growing value.

    Meanwhile C->M->C

    Those who have stocks in order to afford bills when they retire will take the brunt of the blow, since they can’t freely remove their capital from the stock market due to legal restrictions on how their money can flow through the system. The ones who will lose the most are those who are currently retired and have no choice but to eat the losses without any recompense.

    • capital@lemmy.world
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      10 months ago

      When the stock market crashes, those with the lion’s share of money in the system will take their money out and convert it into other capital.

      They sell low? I don’t think so.