The cool thing about capital markets, is that investment in production only makes money when there is demand. Investment in production when there is no demand, makes the capital disappear. It's better than Houdini at that. So go ahead, invest. Just choose to invest in producing something people want. It's really very very simple.
Oh, someone will win if you buy GM stock. In the off chance that there is no bankruptcy, you win, of course. However, in the much, much more likely scenario of bankruptcy, the debtholders and labor union win, or at least they lose less. After all, that money you burnt on GM equity has to go somewhere; it pays off GM creditors/taxes/law fees/salary - whoever has priority claim. And of course, the brokers/dealers who manage your transaction get a commision, so they always win.
@Hello Mister Walrus: You forgot the government. They will claim tier one debt even though they don't have any and then strong arm other debtholders into taking inequitable deals. Any debtholders who refuse will be publicly chastised and privately threatened with SEC, IRS, FBI, and STFU action.
@Gearhead's Garage: You do if you're not playing the house. NEVER play the house. ALWAYS play against your fellow gamblers- they're liable to be much more drunk than you are.
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Strollin'
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