BLOG

Financial musings on India's 75th independence day

I was reading up on stock markets and the intelligent investor book by Benjamin Graham today. A few very glaring unethical issues with the stock markets stood out!

1. Are capitalistic markets ethical and equitable? I feel it helps the rich keep getting richer and keeps suppressing a majority of people with inadequate access to education, resources or opportunities under the rule of the rich.

2. The whole premise of stock markets is based on borrowing money from a certain section of people (who already have the means of excess wealth) by capitalistic firms who use this money to create products, services and goods which will be later hedged against a certain perception of the future value these products and services to sell them at an inflated value for money.

3. It seems highly unethical, unjust and promotes inequality in society.. and I feel we should as a human race take a more empathetic view on money and more widely - an exchange of financial instruments for goods and services.

4. I feel we should have the future customers of a firm invest in a firm only to be returned the goods and services created by the firm at a later date for free to the same initial customers/investors.

5. On Independence day, just had this thought but money shouldn’t become the shackles on our freedom. We shouldn’t be imprisoned by financial limitations.