I appreciate folks who are good at what they do, including criminals. Once someone stole my backpack while the strap was around my ankle underneath a desk in the far back corner of a busy Internet café in Quito. Picturing that talented thief slipping cat-like under the desk and slicing cleanly through the strap only made me think, well done sir, it was an honor to be burgled by a professional of your caliber! Another time I was pickpocketed by a group of boys who packed in against me in a crowded bus in Kathmandu. I immediately detected what had happened and peered around at the expert team, all looking perfectly innocent, and nodded my respect saying, “Well done lads!”
In the same vein, I respect a well-crafted street con. I have been privileged to observe some quality teams in action. I’ve watched them practice their craft in Calcutta, Manhattan, Moscow, Cape Town, and elsewhere. One of the most impressive was a group plying their trade on La Rambla in Barcelona. They were working the classic shell game. The dealer kept expressing all expected chagrin and frustration as he lost bet after bet and handed over fists of cash to an enthusiastic group of “players” who exclaimed their delight at winning most every round.
Here’s the thing, even knowing it’s a scam, even knowing that all those “players” were plants who were hamming it up just for my benefit, it was still really, really difficult not to think I could win too. I watched all those rubes who were obviously not as smart as me win on bets against the clearly inept shell dealer. And when they lost, it was obvious to me every time where the pea actually was. The lure to join in, even knowing it’s all a scam and that I was the mark who was reacting exactly as they hoped I would, was still tangibly powerful.
The reality of course is that I had no hope of actually winning. The players only “lost” when they wanted to lose and I only knew where the pea was when the dealer intended for me to see it. Even if I were to win a few rounds, it would only have been because the dealer wanted me to win so that they could suck me in even deeper. To think I could beat them at their game would have been the height of foolishness.
I can even give some respect to more “upscale” confidence artists. A televangelist for example. These guys are really masters of bilking people out of a lot of real, hard-earned cash for nothing more than the promise of a heavenly pig-in-a-poke. Even a pyramid scheme scammer deserves some credit in my estimation. They manage to convince people they can make money by doing nothing. While in reality, the only folks that make any money are a few of the top level investors who make enough to sell the lie that everyone below them will profit as well.
I am even willing to give some level of respect to the reprehensible low-life’s who recently called up my son’s grandparents claiming to be him and asking for emergency bail money. Pretty bold and brassy to pull that off!
You might think I have a warped and misplaced set of values, as evidenced by my willingness to accord some respect to unsavory criminals. Maybe you’re right. But even I draw the line at stock traders. Despite my low standards, I can muster no respect for them.
Stock trading is just too big a scam, even as compared to organized religion. It is too entrenched, too manipulatable, too exploitable, and too consequential. It is not only destructive but unnecessary.
Look, of course I recognize the need for banking. We cannot function without socially responsible lending and credit. I also recognize the need for financial vehicles to grow our wealth and to support us in old age.
But despite the apparent “winners” in the market, stock trading does not meet any of these goals in a socially equitable or sustainable way. Stock trading is not, needs not be, and should not be, an essential vehicle for raising funds, growing wealth, or securing our futures. Not when it is such an inherently extractive and destructive force in the world.
Stock investment does not make investors “invested” in those businesses in which they hold shares, encouraging responsible long-term caretaker-ship of those companies. Quite the contrary. Stock investment promises maximum rent-seeking wealth extraction for a given investment. It only encourages investors to push companies into short-term dividend maximizing policies at the expense of workers, the environment, and the companies themselves. Shareholders exert their influence to extract maximum profit and move on as soon as soon as they have milked that cash cow dry. Day traders exert the same pressures even more ruthlessly and carelessly through their investment activities.
And even though the system allows just enough “winners” to make everyone imagine that they are smarter than the system or luckier than the system, those “winners” only make enough to entice others to invest and siphon more money from the middle class into the investor class. And as most of those “winners” eventually discover, as does anyone who thinks they are “winning” at that shell game on La Rambla, their winnings will evaporate quickly if they play long enough.
So no. Even though I can respect grifters of all sorts, I cannot offer even a begrudging modicum of respect for stock traders. They are unnecessary, rent-seeking, exploitative parasites who only extract money, real blood and heartbeats, from the little guys who think, like me looking on at the shell game on La Rambla, that they too can profit by playing the game. The stock trading game may not be controlled by one dealer, but it is an emergent form of the shell game that dupes millions of people into betting and ultimately losing.
So what is the alternative? On that I take my advice from WOPR in War Games. The only way to win is not to play. Instead invest in real, tangible assets and in hard work over get rich quick schemes. Build instead of extract. If you have more money than you know what to do with, try giving it away to support lasting and socially constructive efforts.