Yes, I know I wrote it. But beginning, middle, end, argument, facts and a couple of jokes.
The reason this is so important is that only with that general trust across the society can investment be made across the society. My savings go, in part, into a factory I’ve never been to, run by people I’ll never meet. If who I can trust is restricted to my family (and who really trusts all their cousins?) then a business can only be as large as the family can finance. Or perhaps we move out a little further, to the extended family or clan — but that would make us Pakistan.
The entire point of a stock market — of financial markets, more generally — is that we can assemble and then allocate the savings of millions across thousands of projects. This is only going to work if we can trust the system in general. Yes, of course, some of those projects will fail, some of those savings will be lost. But the system as a whole works and it’s that system — the mobilization of savings into investment — that makes our future richer.
Fraudsters in this system? Their crime isn’t just against those whose money they stole, it’s against the very system itself. Thus the punishment should not be the usual rap on the knuckles given to those who steal with paper. It should be a monstrous revenge precisely because of the danger to the whole economic structure.
Deffo in hte say so myself class but still…..