The stock market is a weird thing - prices seem to be tied to whether a company can make more this quarter than last quarter, and not tethered to whether a company makes a profit. I figure that they made record revenue and now need a strategy to make even more profit next quarter, which they hope to achieve by reducing expenses via layoffs.
I don’t like it, but the economy is more tethered to speculation than reality.
Yes that always irks me. We can have 15 “markers of a recession”, but as long as nobody says it’s name, it can’t be true. The media has the Voldemort approach to economics.
it’s not weird. it’s literally how capitalism works. it feels weird because it actually feels fucking wrong and disgusting but we are propagandized into thinking this is ok.
Nah, not even the basic “its capitalism” excuse works anymore for that idiocracy. Capitalism may force companies to increase earnings, which is already stupid enough in itself, but the timeframe that’s measured in got reduced so much in the last few years that even short term goals are impossible without cutting costs.
Ten years ago monthly earnings were at most an indicator, what mattered most were fiscal years. It slowly evolved to quarterly earnings and now we are at a point were a single “bad” (as in, not as much profit as last month) can plunge your stock prices by 10+%.
Yes capitalism always fucked over the working class, bit it wasn’t made to force big, profitable companies to self destruct for 0.5% higher monthly profits.
It’s a pyramid scheme. You participate long enough to be able to move your money to a more stable platform and live off the measly interest that provides.
The stock market is a weird thing - prices seem to be tied to whether a company can make more this quarter than last quarter, and not tethered to whether a company makes a profit. I figure that they made record revenue and now need a strategy to make even more profit next quarter, which they hope to achieve by reducing expenses via layoffs.
I don’t like it, but the economy is more tethered to speculation than reality.
One of the biggest (official) recession indicators, is whether or not the public thinks we’re in a recession.
Yes that always irks me. We can have 15 “markers of a recession”, but as long as nobody says it’s name, it can’t be true. The media has the Voldemort approach to economics.
it’s not weird. it’s literally how capitalism works. it feels weird because it actually feels fucking wrong and disgusting but we are propagandized into thinking this is ok.
Nah, not even the basic “its capitalism” excuse works anymore for that idiocracy. Capitalism may force companies to increase earnings, which is already stupid enough in itself, but the timeframe that’s measured in got reduced so much in the last few years that even short term goals are impossible without cutting costs.
Ten years ago monthly earnings were at most an indicator, what mattered most were fiscal years. It slowly evolved to quarterly earnings and now we are at a point were a single “bad” (as in, not as much profit as last month) can plunge your stock prices by 10+%.
Yes capitalism always fucked over the working class, bit it wasn’t made to force big, profitable companies to self destruct for 0.5% higher monthly profits.
It’s a pyramid scheme. You participate long enough to be able to move your money to a more stable platform and live off the measly interest that provides.
Line go up dog, just give in and roll around in the slop with the rest of us.
…/shrug
Stock prices are tied to what they did last quarter….