> Traders, private equity, hedge funds fall in this bucket.
How do you think the money in 401k, pension funds (government, teachers, etc.), S&P500, and any other financial instruments typically relied on by all sorts of average people grow? Do you think they appear out of thin air by the magic will of the market?
Or maybe there is some mechanism through which efficient price discovery happens in a way that benefits both the average people utilizing common investment vehicles and those who actively manage/administer those?
There is a difference between making staggeringly unhealthy amounts of money in days, than making money slowly over decades.
Traders do next to nothing and are able to acquire this relatively quickly and not give anything of value back.
If your idea of placing your money in a pension fund and locking it up for 40 years and only then you are 60+ years old able to use it a way of giving back to society.
Then you might as well say you’ve been scammed of your time slaving away only to enjoy that money when you have little time left.
Every employee with a pension is praying for their pensions to go up continuously for decades, traders can bet both ways of the market and still end up rich.
One recession and you’ll get a lot of disillusioned employees whose pensions are worth less than they put in years ago.
Traders, private equity, hedge funds fall in this bucket.