Would anyone agree that the stock market is actually a BIG Ponzi Scheme?

[Legend-I-Aint]

I am fairly new to investing and everything I have purchased so far I intend to hold long term. I guess they call this "going long".

Every day I get up and see some new story about why my stocks are worth more or less. It feels like there is a script. When folks in high places want stocks to go lower so they can buy more, then it goes lower based on their news story. When they are ready, they run things up and bit and jump out making their profit.

Wash, rinse, repeat.

I can not afford some of the bigger better stocks because I am poor. I am trying though and after three months I am even. I just get the sense that things are awfully manipulated.

Probably try this stuff for a few more months and then go back to what I used to do. Just stick my extra $400 per month in my savings account.

 

[Presto]

A ponzi scheme? Just because Goldman Sachs runs the Treasury Dept. and the Federal Reserve is a private corporation accountable to nobody?

What could possible go wrong with that arrangement?

 

[SmallDaddy]

You wanna think 5-10 years down the road (at least). Cant worry about short term fluctuations

I would say GE is a good buy. Also big banks C, BA.... since the gov't is not letting them go out of business, they will eventually rebound. When exactly? Who knows? But they will

 

[SpreadDestroyerr]

All stocks COULD go to zero. Doesn't mean they WILL or the companies are bad because of their cheap stock price. There are some VERY good companies trading WELL below tangible book value right now as well as price to sales ratios lower than .5

 

[TomGshotput]

A Ponzi scheme and the stock market will crash for very different reasons, so I would have to say no

A Ponzi scheme operates only with money that it brings in on its own. Companies in the stock market operate on both money from their customers and investors. Microsoft and Ford are selling products that are real and have a definite utility

 

[TomGshotput]

Just stick my extra $400 per month in my savings account. Until you have six months income in your savings account. Then CDs. There is absolutely nothing wrong with a high bank account. And lots of good things

 

[ProPokerPlayer]

Back when i was investing in Sirius radio i wrote Jim Cramer asking him how a company like Sirius could be allowing its executive mgmt to sell 100's of thousands of dollars a month of stock options...They would give them options to buy for say .30 a share and they would sell them the same day at the $2.50 or $3.00 price they were selling at then buy a few hundred thousand more that same day for .30 each as well....
Here was a company that STILL to this day has never shoen 1 penny profit yet they were siphoning off a million or so a month with these 'options".
There is no other word but PONZI to describe what they were doing....without regular investors buying everyday they could not pay these options....so the regular buyers were fiancing this ponzi scheme.
Cramer never responded although he did have Mell on 2 or 3 times afterwards screaming "buy Sirius"......They should all rot in jail....

 

[rolltide]

what I love about Cramer is that he has 5-6 buy tips per show, every day of the week. meanwhile, an actual billionaire, Warren Buffet, says he's lucky if gets 1-2 legit stock tips per year...

f cramer

 

[roadreeler57]

Isn't the stock market actually legalised gambling er I mean "investing"?