It's the same reason we require ID for alcohol and gun purchases. Obviously it isn't a perfect system, teens drink but good luck suggesting that 13 year old should be allowed to buy alcohol.
2,448 karma · joined September 5, 2021
It's the same reason we require ID for alcohol and gun purchases. Obviously it isn't a perfect system, teens drink but good luck suggesting that 13 year old should be allowed to buy alcohol.
If it's a poorly run fraudulent company the regulators and the banks are at fault for letting it go public not the indicies
It isn't called the S&P495 because they kick out 5 of the biggest companies that some people consider to be risky.
I personally think its super risky to want to be Diversified and NOT include any exposure to SpaceX. Yes, Elon is unique but that doesn't mean his companies are going to fail especially given the potential risk of AI changing the world. Is IBM going to keep selling overpriced IT outsourcing in 5 years?
Just look up the performance of Mutual Funds vs S&P500.
They are not saying these 500 companies are going to be the most successful in 6 months or 10 years. At one point Enron was 0.6% of S&P500 because it was a large company, not because the directors at S&P500 thought the management were honest people.
If you don't like that, fine, don't buy S&P500 and buy stocks or other funds that do have companies you like.
Tesla FSD makes driving 90% less taxing mentally. It does 99.9% of the driving perfectly. And its getting better. We are quickly approaching a situation where people who don't drive Teslas are like people who cut their grass with Sickle as compared to people who have driving lawn mowers
BTC is in a much worse situation than gold was in 1970. The government has the technology to follow transactions and require BTC transactions to be done on their chain with their BTC equivalent GBTCs. That is until the government decides to issue print more BTC equivalents
Social status is zero sum and as more of the economy gets automated that becomes all that is left that is scarce
For example at one point nails were 0.5% of the economy and today owning a nail factory is a low margin business that has no social status.
Similarly the percentage of the economy and social status associated with frontend software dev will get automated and become a smaller percentage of the economy.
Since social status is a zero sum game people increase spending in other areas where social status can be helped.
So instead of seeing mass drop in job openings you will see companies that are not bottlenecked by org issues start to move very fast. In general that will create new markets and have a positive effect on kobs
For example, someone who allegedly beat their wife, has a right to a trial. But if activist judges make decisions that cause the trial to not take place for 10 years that is obstructive and the alleged victim doesn't get justice or protection from future assaults. So if that person is deported before the trial you could complain about lack of "due process" but you would be ignoring the rights of the victim.