Home Investing and Finance The Phantom Financial system is Magnitudes Bigger Than the Actual Financial system...

The Phantom Financial system is Magnitudes Bigger Than the Actual Financial system – Funding Watch

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by Chris Black

A small private enterprise that requires revenue off the sales of its product to stay in business  cannot compete with a monstrosity of a public company that can lose billions of dollars a year, yet fake EPS in order to get a fresh capital injection through selling shares.

We have seen bankrupt companies soar in value because of MEME investing, turning shares into a game of Magic the Gathering card values; just because someone puts a card on eBay for $100k, doesn’t mean it is worth that.

GameStop’s previous all-time high was $67 per share in 2006, when the company was profitable.

That got blown out of the water when staying in business was barely a possibility. The actual retail situation hasn’t got any better, but the company got a reprieve and paid off debt by issuing new shares at an inflated share price.

Instead of dying and allowing new corporations to thrive, the phantom economy keeps growing.



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