Under pure laissez-faire, with neither money supply inflation by the Fed nor credit expansion by commercial banks, the stock market as a whole would never go up.

The only reason the masses invest into stocks is to protect their savings from inflation and to take advantage of booms.

Eliminate both, and the vast majority of investors will pull out of the stock market altogether, preferring to hold cash instead.

This is normal and good. Business is for heroic lone entrepreneurs, not for dull multitudes who have no idea what they are doing and qualify to be mere laborers. In addition, ownership of the means of production, as Mises pointed out, is not a privilege but a social liability. Let them lose their sleep.

It will, however, cause the stock market to decline by, say, 95%. The Wall Street would therefore be brutally opposed to sound money and honest banking.

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