The Stock Markets and the Banks

[exchemist]

The world is changing, old institutions are obsolete and holding us back. More and more we find people seeking alternative means to fund projects that don't involve banks and investors. Banks and Wallstreet can acknowledge this or get left behind like the Music Record Industry did.

There is no evidence I am aware of that banks or the stock market are going to be displaced by some new means of funding. What evidence can you provide, other than this kickstarter fringe activity, involving mainly arts projects? How many manufacturing businesses have been started - or expanded - this way?

 

[JustGeorge]

Currently, my paychecks are directly deposited into my account. But to my bank's dismay, I withdraw every dime immediately, and just make deposits when I need to use my card.

I feel like it's a sin everytime I do it.
...I know they don't like me doing that.

If you really want to dismay them, request your money back in two dollar bills and fifty cent pieces.

My husband did that for a long time... they'd cringe to see him coming.

 

[Revoltingest]

There is no evidence I am aware of that banks or the stock market are going to be displaced by some some new means of funding. What evidence can you provide, other than this kickstarter fringe activity, involving mainly arts projects? How many manufacturing businesses have been started - or expanded - this way?

The Helix folding bicycle was initially partially funded this way.
Helix - The New Standard In Folding Bikes
While it was one of the largest offerings in the history of Kickstarter,
only about $1M was raised. Other financing was necessary.

 

[ADigitalArtist]

Are you saying it's like Kickstarter, where those
who contribute money have no rights or equity
in the project?
I doubt that they'd give me money to build my
facility. Typically, Kickstarter programs offer a
product to funders if the project survives, but
they're under no obligation to do so. Also, it
works when the benefit isn't restricted to locals.
Self storage has no benefit to anyone outside
my area.
But I can go to a bank, & easily get financing
for the whole thing from a single source.

If the banks approve. Nich projects can get funded by croudsourcing easier than trying to get approval from old funddyduddys. Recently there was a Kickstarter for a popular Dungeons and Dragons show to make an animated series of their show, and the interest in their community was so strong that they generated 12 million.

 

[Revoltingest]

If the banks approve. Nich projects can get funded by croudsourcing easier than trying to get approval from old funddyduddys. Recently there was a Kickstarter for a popular Dungeons and Dragons show to make an animated series of their show, and the interest in their community was so strong that they generated 12 million.

Do you think this funding mechanism will replace banks, equity
firms, insurance companies, & other single source lenders?
I don't.
It appears that your mechanisms work when the public has
interest in it, but not all ventures have that general appeal.

 

[BSM1]

By asking the general public rather than formal investors.

Duh! That's what the Stock market does.

BTW, banks are useful tools for us capitalists who do not want to waste all those hours counting our money by hand...just sayin'.

 

[ADigitalArtist]

Do you think this funding mechanism will replace banks, equity
firms, insurance companies, & other single source lenders?
I don't.
It appears that your mechanisms work when the public has
interest in it, but not all ventures have that general appeal.

It could. I dont know if it will. But I suspect it will take a lot more of the pie once these fuddyduddies have retired. Already I see more personal projects in my generation and millenials, from starting a studio to funding adoption costs, by kickstarter and gofundme than trying to get a loan.

I have a friend in her 20s who just funded her first down payment via gofundme.

 

[Revoltingest]

Duh! That's what the Stock market does.

BTW, banks are useful tools for us capitalists who do not want to waste all those hours counting our money by hand...just sayin'.

Sounds like they'd replace one stock market with another
stock market...one without equity rights, & not regulated
by the SEC (yet).

 

[bobhikes]

Can we live without them? Because it's come to my attention that they might be unnecessary entities that exist like leaches, sucking up our money for themselves, while producing nothing for us in return.

I often wonder why I should leave my directly deposited check in the bank... So they can claim more revenue to gain power for themselves? And then when I want to cash a check, they insist on a 14 day hold..? When I'm in need..?

Why should I care for them?

 

[Shadow Wolf]

How do I use that to build my new self storage facility without investors?

Half joking/half serious, you'll have to adk someone more knowledgeable in the ways of the online world. I just know there have been some impressive crowd funded projects. I don't know how exactly they go about doing it, other than doing something on sites like go fund me (I tried and got nothing, but I'm horrible at marketing, advertising, amd self promotion). And I can't make it through an article involving technology anymore without having to look up what something is.

 

[bobhikes]

It could. I dont know if it will. But I suspect it will take a lot more of the pie once these fuddyduddies have retired. Already I see more personal projects in my generation and millenials, from starting a studio to funding adoption costs, by kickstarter and gofundme than trying to get a loan.

I have a friend in her 20s who just funded her first down payment via gofundme.

Unfortunately money is the system that makes the human world work. Is it necessary no, but it is what we currently use and until someone comes up with a better system we are stuck with it. It has as many benefits as failures but until another system is found banks and markets support the system.

 

[Shadow Wolf]

Duh! That's what the Stock market does.

BTW, banks are useful tools for us capitalists who do not want to waste all those hours counting our money by hand...just sayin'.

These don't have the strings attached that stock market investors come with. It's people based, not business and profit based.
And, btw, they make these awesome little nifty devices that will automatically count your money. I don't even count it by hand unless I'm at the store.

 

[Revoltingest]

Unfortunately money is the system that makes the human world work. Is it necessary no, but it is what we currently use and until someone comes up with a better system we are stuck with it. It has as many benefits as failures but until another system is found banks and markets support the system.

Money is necessary. There's no alternative without returning
to a primitive farming or hunter gatherer structure.
Why, you ask?
Money is just the label for the tool of resource allocation, which
will never go away in any non-primitive economy. Call the units
of allocation "credits", "quatloos", or "commulets", they're just
other names for money.

 

[Revoltingest]

These don't have the strings attached that stock market investors come with. It's people based, not business and profit based.
And, btw, they make these awesome little nifty devices that will automatically count your money. I don't even count it by hand unless I'm at the store.

"People based"?
But people are typically humans, & those things are the worst!
No "strings attached"?
That means no accountability. Thieves & charlatans will rule.

 

[oldbadger]

No, I do actually get my money deposited into my bank, I just call that money a pay "check", as it's the traditional term.

But I then take all that money out in cash. So the bank can't claim it in their "net holdings" to gain power or rank.

But you can draw it as soon as it is in your account.
The bank does not stop you withdrawing what is in your account...... true?

If you want to cash a real cheque then of course your bank will want time for the funds to transfer, so why don't you always ask for banker's drafts, or cash, or direct payments from those who owe you money/

Things can be as easy or as hard as you let them be.

 

[sun rise]

"People based"?
But people are typically humans, & those things are the worst!
No "strings attached"?
That means no accountability. Thieves & charlatans will rule.

Age and experience vs youth and optimism. The old old struggle.

 

[Revoltingest]

Age and experience vs youth and optimism. The old old struggle.

I bet you & I are thinking of the same joke.
Alas, whoever posts it would be banned.

 

[ChristineM]

Can we live without them? Because it's come to my attention that they might be unnecessary entities that exist like leaches, sucking up our money for themselves, while producing nothing for us in return.

I often wonder why I should leave my directly deposited check in the bank... So they can claim more revenue to gain power for themselves? And then when I want to cash a check, they insist on a 14 day hold..? When I'm in need..?

Why should I care for them?

Our money comes from stock market investments, shares and annuities in the UK. Dividends are paid into our UK bank. When the exchange rate is favourable we use a foreign currency company to transfer pounds sterling from our UK bank to Euros in our french bank. Most of our spending is in Euros by debit card.

Quite frankly our family could not survive without the stock market, financial exchange specialists and banks. Services that i am very happy to pay for.

 

[Shadow Wolf]

"People based"?
But people are typically humans, & those things are the worst!
No "strings attached"?
That means no accountability. Thieves & charlatans will rule.

That hasn't seemed to be the case. And people are still making legal agreements, even when it's private citizens meeting online to arrange a meeting. But a lot of people don't even do that and they get the money donated to them.

 

[Shadow Wolf]

Are you saying it's like Kickstarter, where those
who contribute money have no rights or equity
in the project?
I doubt that they'd give me money to build my
facility. Typically, Kickstarter programs offer a
product to funders if the project survives, but
they're under no obligation to do so. Also, it
works when the benefit isn't restricted to locals.
Self storage has no benefit to anyone outside
my area.
But I can go to a bank, & easily get financing
for the whole thing from a single source.

Amd yet with many of these programs people give with the expectation of nothing in return.
We are social animals. We are wired for cooperation (which enhances our lives and survival rate) over competition (something people havent been liking when it comes to their life and wellbeing, and no one should have to compete against others for food.