Isn't the fact that the stock market profits from disaster?

Question

a good clue to how fundamentally screwed up the economy is?

Answer 1

Yeah, in a sense.  But only some companies profit -- many lose money.  The companies that do profit are the ones providing important services.  It's all about supply and demand at the end of the day.  If a service is in high demand and supply is limited, price rises.  It's as simple as that.  During a time of need, such as during a natural disaster, millions of people may need aid (increase in demand).  Naturally, supply will be limited in this time, so voila, the price will go up.  

Answer 2

Thats kind of like saying doctors and nurses profit from suffering.

Answer 3

You can make money when the market goes up or down, its volatility that makes people $$$.  Disasters create purchasing opportunities...if hurricanes blow over homes then buy stocks in wood and paint.

Answer 4

If you are a short seller, indeed you can.  Look at all the short sellers who cleaned up on Bear Stearns, f***y Mae, and Freddy Mack.  Not to mention Citicorp.  ha ha ha.  

Answer 5

The stock market doesn't make money from disasters or from good times, but investors and traders do.   The stock market is an entity that provides the place and the mechanism for trading securities, so it is not a profit producing entity.

Corporations that are traded on the exchanges, and even those that trade over-the-counter make profits, at least that's what they are suppose to do. This is the capitalistic system, this is what built all major nations and keep them strong.

This country got to be a world power because of capitalism, many countries in the world are also great because they are based on capitalistic beliefs and agendas.  Without capitalism we would not have survived all these years and to put down capitalism is wrong, those that do are just showing their immaturity and/or ignorance of basic economics and world affairs.

Answer 6

It certainly seems to profit from war.  If it were not for WWII, we might still be in a depression.  Maybe that was why Bush invaded Iraq.  So Haliburton could make a nice profit.  

Answer 7

I don't think you could support your contention by looking at the stocks of insurance carriers.