Making money for money's sake

[DonkeyApple]

DSM2 said:

Driller said:

ShadownINja said:

Driller said:

I agree absolutely, everyone has to earn a fair living if they work hard. I just think that money should represent useful goods or useful services rather than be the end in itself.

I am not sure most jobs satisfy that criteria. That's the problem. What is "useful"? In the end, what does a trader provide as a service? What do banks do with our savings? I'm sure some of the professionals will be along shortly to give insight. And what if a trader earns lots and gives money to sales assistants for goods which then pay for the sales assistants' salaries plus cleaners plus salaries of people in third world countries from where the goods came?

Edited by ShadownINja on Thursday 12th August 13:13

I think most "jobs" or activities are useful. However when for example a trader is buying or selling he does not sit back satisfied knowing that when he gives the money earned to a sales assistant he will pay their salaries.

Someone selling something to a customer who has sought out that product and giving the client helpful advice and or installing said thing would be an example of "useful" in my view.

I think you miss the point. Most businesses add value somewhere along the line. Trading does not.

That is very wrong.

In its simplest terms trading in a stock increases liquidity which makes it easier for the firm to raise capital.

Listed firms need trading activity for this exact purpose as the reason most are listed is for raising funds and selling stock.

Pension funds wont invest in an illiquid stock, thats why there are liquidity rules for FTSE100 stocks. Traders supply this.

[Jasandjules]

Driller said:

So you're saying that making money for money's sake is not meaningless?

Well, making money is not meaningless when the economy relies upon it. Even when you consider investment banking, the dealing makes money which then pays the staff.....

[fido]

Trading assists in the price discovery of asset prices, and thus in theory provides a vital role in the functioning of our markets, and thus has economic value. A biological analogy would be parasites which live off the host but provide mutual benefits to each other.

Edited by fido on Thursday 12th August 23:24

[oyster]

Trading provides value by providing a buyer and a seller of an investment at the time when they need each other.

[KANEIT]

oyster said:

Trading provides value by providing a buyer and a seller of an investment at the time when they need each other.

Aye. Middlemen, recruitment consultants etc etc, all the same. You could argue that all are useless but if so why do they exist? Nobody has the means and knowledge to carry out all essential tasks and cover all functions themselves. The trouble is some people refuse to see the value a person, product or service adds. These people try to circumvent this with a DIY approach. They ultimately fail.

[HundredthIdiot]

KANEIT said:

Aye. Middlemen, recruitment consultants etc etc, all the same. You could argue that all are useless but if so why do they exist? Nobody has the means and knowledge to carry out all essential tasks and cover all functions themselves. The trouble is some people refuse to see the value a person, product or service adds. These people try to circumvent this with a DIY approach. They ultimately fail.

In theory.

In practice, "recruitment consultants" are invariably useless and direct advertising works better. In my experience.

[KANEIT]

HundredthIdiot said:

KANEIT said:

Aye. Middlemen, recruitment consultants etc etc, all the same. You could argue that all are useless but if so why do they exist? Nobody has the means and knowledge to carry out all essential tasks and cover all functions themselves. The trouble is some people refuse to see the value a person, product or service adds. These people try to circumvent this with a DIY approach. They ultimately fail.

In theory.

In practice, "recruitment consultants" are invariably useless and direct advertising works better. In my experience.

My experiences are mixed! I suppose there are levels of competency in all professions, some recruiters are expert and truly knowledgeable in their field and some are just cheating lying salespeople .

[ShadownINja]

Yep.