14. Stock market profit came from the buyers not from the company.

Fallacy 4. "Company did spend their profit in stock market. Some of them bought the stock of their own company."

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Answer. This is a typical problem how CEO of companies abusing their power. Yes, some companies did buy the stock of their own to boost the stock price. But remember the money they spent were the profit of company. It belongs to shareholders. The money should be distribute to shareholders as divident. But the CEO intercepted the profit to manipulate the stock market. They don't work for the interest of shareholders but for the interest of inside group.

So there is an important opinion you must know: that the profit gain from the stock market is not from the company but from the later buyers. (potential loser)

An individual company may gain a good profit. That profit won't play the role to raise the gain in stock trading. The company profit is paid to stock holders as divident. Whatever the media tell you the economy is good, the fact of current situation is: The average divident rate of stock market is 1.5%. You invest 10 dollars in stock, the average divident income is 15 cents per year.

Then how can you have a 11% annual gain in stock market trading? It's from the money of other buyers. When you bought "Google" at $100 a share and sold it at $300, keep in mind that it's not the "google" company paid you the $300 but another buyer paid it. So it's the other buyers' investment let you make money.

This is a point very important. Not the Company profit but the continueing coming investment push up the stock market.

To make it more easy to understand, the trading stock worth at $100,(or you can say it's 100 billion) next year new investment coming at $111, (or 111 billion) then there is a 11% growing up rate. Because government pushed the pension fund into the market these years, so you saw an average 11% gain each year. It only means more and more pension money became paper. Money was harvested by sellers. What left for later buyers are only stock papers, (they hope new buyers will take it over with even higher price).

What is the current stock market? A bunch of papers. The stock holders exchanged them with their pension fund. (with 10 years, 20years...even 40 years of their pension fund). If they want to cash these papers, who had that much money? That's why Bush desperately to push the S.S. fund to save the market from collapse.

If the Privatization succeed, it only delay the crisis from expoision but make the balloon bigger. The young generation will be the victim because Bush lured them to take over the hot potato(stock paper) with their retirement fund.

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If Feds call you and defame my message, it is a tactic of intimidation. They don't want people know the fact.
It also proves what I wrote are truth. They are afraid of it.