Please tell me why you think that is not the case. http://www.investopedia.com/terms/z/zero-sumgame.asp
A hedge fund employs people to do a job. The food the employees buy while eating lunch employs waiters and restaurants which employs truck drivers to bring the food to the restaurant. The truckers pay fuel taxes that build roads. It's called an economy.
Investopedia Says "... A stock market, however, is not a zero-sum game because wealth can be created in a stock market...." Because this quote is incorrect.... wealth may APPEAR to be created, but it's only transitory. The view expressed is narrow and short-sighted (and therefore wrong)... Wealth is not "created", only transferred from one party to another... though not as obvious as say, the futures markets.
it is the difference between what you produce and what you consume, so produce more, or consume less.
This is one of the most ignorant and uneducated things I have ever seen. I, I don't even know where to begin.....
Do you think that hedge funds operate from another galaxy where they beam money from earth without contributing anything here? Hedge funds also employ real people who spend real money to buy real things and pay real taxes on this planet. Then there are things like rent; computers, telephones and IT; other office equipment and supplies; quotation and news services; research, information and travel expenses for analysis of current and prospective investments; legal and accounting; sales and admin costs like printing; brokerage commissions, clearing and settlement charges; etc. These involve real monetary transactions and taxes on earth. Itâs called an economy. Where everybody contributes something and in turn receives something.
That is interesting. Everything you said here apply to any company with a pension. It is the basic expense for running a company, except real company actually provide a service or product. Hedge fund is largely a zero sum gain. In order for Hedge fund to earn something, someone else has to lose. Trades have 2 sides and you don't have a win-win situation. That is not economy. I will admit that hedge fund does provide liquidity of some sort. Like a non-profit organization with a VERY HIGH expense ratio, it is doing very little good for the amount of money it sucks up.