/biz/ - Business & Finance

ITT we debate whether or not the stock market is nothing more than a giant Ponzi that never fails to find new "investors."

In order to profit off the stock market, you need to have more fools down the road who are willing to contribute their money into this giant Ponzi, thus driving up stock prices and making the Ponzi grow even more. At some point, the economy slows down and eventually less money will flow into the stock market. This is when the giant Ponzi begins to fall apart and the market crashes, wiping out all new investors' wealth while still letting older investors profit.

If all stocks pay dividends and trade in narrow ranges like currencies then I would be more hesitant to call the stock market a giant Ponzi but we all know that many stocks don't pay dividends and they fluctuate/bubble like no tomorrow.