Secondly, I will briefly explain to you how finance came into being and why our society needs finance.
At the earliest time, we all earned money separately, and no one needed finance. However, with the further development of economy, some people earn more and need to find a safe place to store their spare money. At the same time, we also hope that this place can give a certain deposit income (that is, deposit interest) in addition to safe storage. Others want to spend in advance, or invest in some businesses or industries, but lack the necessary funds, so they start borrowing from each other. But on the one hand, such lending is too sporadic and inefficient; On the other hand, people who provide funds often can't fully evaluate the borrower's repayment ability, so it often leads to borrowing without repayment. Later, some powerful and reputable businessmen began to operate the business of lending intermediaries, that is, acting as financial intermediaries. On the one hand, they absorbed depositors' funds and promised a certain deposit interest, on the other hand, they lent these absorbed funds to people who needed to spend or invest in business in advance, charging higher loan interest, thus earning the difference. These people are the early bankers, the earliest "banks". They first appeared in 16 and 17 centuries in Italy, the Netherlands, Britain and other European countries. China's "Qianzhuang" in the Ming and Qing Dynasties also had the embryonic form of a bank. The emergence of more complex securities was first born in Britain. Although the logic of its production and operation is different from that of banks, its basic function is to promote the financing of social funds, improve the efficiency of the use of funds and optimize the allocation of resources.
Thirdly, let's talk about the important role of finance in modern economy. As far as banks are concerned, on the one hand, they manage funds for our depositors to ensure their safety and profitability, on the other hand, they lend these funds to reliable people (or enterprises) to support their careers through professional auditing, thus creating more wealth for society. As far as securities are concerned, on the one hand, it broadens the channels of direct financing for enterprises, which is conducive to expanding reproduction and standardizing management (because listing as a public company must be supervised and supervised), on the other hand, it provides more investment channels for the public. As far as insurance is concerned, everyone's money is concentrated to deal with some unexpected situations that may happen to you. Futures, options and other financial derivatives also have their inherent logic and practical significance. It can be said that it is unthinkable for modern society to have no finance.
Finally, let's talk about why you think finance is the biggest scam in the world. First, it may be because finance itself does not create value. In fact, education, medical care and services do not create value, so are these all scams? Second, the reason why you think that finance is a scam and education, medical care and services are not may be because you have suffered losses in the stock market or other financial markets, but this does not mean that finance is a scam. In the financial market, it is normal that some people make money and others lose money. You can't say that finance is a scam just because you lost money. Third, it may be because you see that some financial predators earn a lot and the wages in the whole financial industry are relatively high, which leads to your misunderstanding of finance. In fact, the entry threshold of the financial industry is relatively high, the work is complicated and arduous, and the risks are high. Therefore, the overall income is relatively high and the income is relatively high, which does not mean that finance is a scam.
I hope the above answers can help you, and please criticize and correct me. thank you
Finance is a "financial intermediary". In ancient times, people "bartered things". After the emergence of money, finance has affected human life. China people's intuitive understanding of finance is the banking business in the TV series "Qiao Family Courtyard", which is universal. Qianzhuang provides services for Shanxi people and even China's trade, and also accumulates great wealth for Shanxi merchants!
In modern times, with the rise of capitalist countries and the prosperity of world industrial civilization, finance has played an important role! With the economic globalization, there are more and more financial derivatives, and banks, insurance, securities and futures are everywhere. In the 2008 financial crisis, two major investment banks in the United States went bankrupt; This year, the COVID-19 epidemic, global economic recession and financial crisis have further intensified, and more and more debts have defaulted! Therefore, finance used to serve the real economy, but now it is used as a tool and developed into a currency war. It is no exaggeration to say that finance is the biggest scam in the world.
We can't say this in general, only that finance can only be a commercial activity that generates value through the operation of financial instruments, and it is a hyped concept or information.
Politics, religion, isn't it a scam? Where there are people, there are rivers and lakes ... blend in and go ashore before drowning.
How can finance be a scam? The so-called scam is artificial and has nothing to do with finance.
This is a sensitive topic. Actually, I don't want to give a conclusion in my answer. I just want to list a series of events, and everyone can judge for themselves. Unlike westerners, we don't like to cover up the truth with a set of seemingly reasonable logic, and we don't like to build the ability to "throw the pot". We have one thing to say and one thing to say.
Is finance the biggest scam in the world? Let's first review the great watershed of money in the 1970s.
With the signing of the 1944 Bretton Woods Agreement, the US dollar, as the only sovereign currency linked to gold, has become an international central currency. It is determined that the value of $ 1 is equal to 1/35 ounces of gold, which can be exchanged.
197 1 year, US President Nixon unilaterally announced the closure of the gold exchange window and terminated the obligation to accept gold from foreign central banks. Dollars and gold stopped accepting, and the Bretton Woods system collapsed.
1976 After Jamaica Agreement was signed, gold was monetized, and national currencies no longer anchored gold. Dollar and gold bid farewell to each other completely, and realized a gorgeous turn to pure legal credit paper money, that is, currency anchored sovereign credit.
What does the above mean? That is, in the past, currency issuance needed to mortgage physical gold, but now it only needs to mortgage sovereign credit. This opens the door to weaving "that what". Since then, the capital interest groups hidden in the background have laid out tablecloths and put on tableware. Hehe, the limited has become infinite and cool.
Since then, financial black powder has appeared, and so has his twin brother, inflation, deflation and economic crisis! The most striking thing is that finance is constantly evolving, that is, financial innovation. The so-called innovation is nothing more than gambling more, adding leverage and pulling a new term. Ha ha laugh
Well, in a word. Just like others used to borrow money from you with gold as collateral, now they borrow money from you without collateral, as long as you believe he will pay it back. Think for yourselves and decide which one is a scam. If so, it must be worldwide, because that's how the US Federal Reserve and the global quasi-central bank play, and all countries can only play like this.
Oh, yes, there are many so-called economists and many theories, but so far there is no theory that is not self-defeating. Is it funny?
Why is finance a scam? Your medical insurance and endowment insurance belong to finance; Your WeChat, Alipay and credit card belong to finance; The currency you use belongs to finance; The bank card where you get paid belongs to finance. People's life and work are closely related to finance, and finance is a part of society now. What lies did he tell you? Suddenly it became the biggest.
It cannot be said in general terms that the financial impact on each group is different. For a country, finance is the basis of mutual transactions among countries, otherwise how to communicate in modern society can't be the original transaction of goods. Enterprise development is necessary. Without finance, only primitive accumulation can make it bigger and stronger. You can go public, but you can't leave the bank For individuals, it is the redistribution of wealth, such as the stock market. The stock market does not generate money, and corporate dividends cannot be supported at all. The so-called process of A entering B is reasonable and legal. Stay away from suggestions you don't understand. For most people, financial management is a scam.
There must be a reason to exist.
Accurately speaking, the stock market is the biggest gamble in the world!