Real estate mafia is one word that we have been hearing recently from a lot of sources, especially from the leftist politicians. Im wondering Why we are calling them a mafia ?
Realestate people buy and sell land. Land is a scarce resource and its demand is ever increasing. When something is in demand, its natural for the prices to increase. The profit in realetate is the margin you get when a transaction happens.
In share trading also people buy and sell shares. The profit is the margin amount. Now this is very much similar to real estate. Lets looks at the differences between realestate and share trading
- Land is a scarce resource but shares can be issued in any numbers any time
- Land prices are very much stable compared to share prices
- Land tading is a simple concept and the market forces are easily understood, while share trading is a very complicated process with lots of complex laws.
- Share trading a much much riskier thing to do when compared to realestate.
Its looks to me as if there is not much of a difference in the concept of realestate and shares. I see a point in buying and selling land. But I dont see any point in share trading. Why are we buying and selling shares at a frantic rate.
Whats the whole idea behind a share market and this trading thing. Isnt it all a hype these corporates create to make us invest our hard earned money into some companies at exorbittant prices ? Isnt the present share market a big mafia of the corporates ?
We call the real estate people a mafia, and the realestate job has no respect. But people trading shares are seen with respect. Both are doing similar things. Buy low, sell high. This is the principle in both businesses.
Then we should be calling all the share traders collectivley, The share market mafia.
|
|
|
|
 |
Related posts
If you enjoyed this post, make sure you subscribe to my RSS feed!
