this post was submitted on 01 Sep 2026
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[โ€“] plyth@feddit.org 15 points 1 week ago

โ‚ฌ400 billion is their goal. They only want the banks to do that and have changed regulations.

Whatever it is, it's not popular in many languages on Wikipedia:

https://en.wikipedia.org/wiki/Savings_and_Investments_Union

[โ€“] MyBrainHurts@piefed.ca 9 points 1 week ago (2 children)

Tricky one. I love the sovereignty but I also wonder how much that will cut into someone's pension etc as American stocks have wildly outperformed most other stockmarkets. Admittedly, I'm also worried about a serious crash but...

Like I said, tricky one.

[โ€“] khannie@lemmy.world 10 points 1 week ago (1 children)

I'm sure that 400 billion inflow is helping that wild outperformance too though.

[โ€“] MyBrainHurts@piefed.ca 1 points 1 week ago (1 children)

The total value of the US stockmaket is 70+ trillion. 400 billion is something but not even a significant percentage.

[โ€“] khannie@lemmy.world 4 points 1 week ago* (last edited 1 week ago)

I hear ya, but how many years has that outflow been going? And how much does that push up the price? (I don't think it's linear)

Edit: not looking for an actual answer there... More just a point of thought

[โ€“] eyesaremosaics@lemmy.zip 5 points 1 week ago (1 children)

It's a Keynesian beauty contest, prices go up because more people put their money there. If they keep it local that also improves the local returns

[โ€“] MyBrainHurts@piefed.ca 2 points 1 week ago (2 children)

Ehhhh, a little bit this is also a drastic oversimplification of how the stock market works.

American companies tend to have higher profit returns and growth potential. There aren't many Microsoft, Alphabet, Meta, Nvidia's etc in Europe. There are also huge hurdles to growth (navigating almost 30 different sets of regulations plus EU regulations, or however many languages) that American companies do not face.

[โ€“] eyesaremosaics@lemmy.zip 2 points 1 week ago (1 children)

To an extent, but the claimed future growth is just that, a claim, and companies like Mag7 and the whole AI industry and priced at eye watering levels above their actual earnings. Keep in mind that those reported earnings also include circular financing, for example they report it as earnings/profits when one of their AI investments/subsidiaries goes up in stock price, even though that does not represent actual trade with consumers. There's a whole lot of smoke and mirrors covering the real value

[โ€“] MyBrainHurts@piefed.ca 3 points 1 week ago

Oh for sure, the AI bubble is terrifying as I think I noted very early on in the thread. But, even excluding the last half dozen years (so as to ignore American's absurd covid recovery and AI hype) American stock returns have significantly outperformed European ones.

[โ€“] ChrisDoeser@feddit.org 1 points 1 week ago (1 children)

it's true that american companies (especially the tech monopolies) often have higher profit margins, but, besides different regulations, the lack of investments is a big problem. So I also think that a S&I union could improve the value of European stocks at least in part.

[โ€“] MyBrainHurts@piefed.ca 2 points 1 week ago

Oh absolutely, I'm not saying that this won't help, I'm just saying that there is a very real trade-off and it would be unwise to pretend there isn't one.