Growth of what, exactly? Earnings? by EV/S you mean Enterprise value-to-sales? or EV to share price? How is trading at 10x value reasonable?

Let's consider another company. Amazon, before AWS actually made it profitable. The company was losing money year after year, while the stock soared.

I'll pause for a moment to mention I used to day trade, so some of my questions are slightly rhetorical. And also a bit tangential to a point.

There is obviously a need for capital to create and grow businesses. Once a business sells shares, they get no "direct" benefit of the shares trading. Sure, high share prices means future share issuances raise more capital, or employees can be compensated with an option.

Otherwise, the increasing stock value means capital of investors/speculators is tied up, not serving new capitalizations nor the economy at large.

WidgetInc IPO is $10, and gets bid up to $100. WidgetInc only ever gets $10, the other $90 is "created" in the market, never goes to directly help WidgetInc as a business....

The point: There is a deep problem with the system that resulted from the switch to a fiat currency. MMT is claiming to explain it, though I think MMT is missing some of the key problems here as well. I want to find the nexus where the problem lies, the cause, the cause of the cause, etc...

As a generalizaation, I think of Wall Street as Vegas without the cute cocktail waitresses. Taking a position is often called "placing a bet" lol, WS is at least tongue in cheek in self reference...

Color-Obsessed Researcher, Investigative Journalist & Columnist, Hollywood Actor, Filmmaker, & 3x Emmy® Winner, and Itinerant Technology Evangelist

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