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pchan, no reason to fire it away. Just some minor points: Whether there are locals or not, it is pit traded or not, market makers do something or do not that something does not matter. The only difference that matters --- and you can read it in my first post: Assets traded (stocks, houses, gold...

volente, how much asset value had been in the balance sheets of all the stock holders when it was priced at $5 and how much asset value is there when it is priced at $10? Got a sum or got a zero-sum? My valued friends, you make my day. MK

Bolimomo, >It doesn't seem like you understand what the term "zero sum game" means. It's a different context. No, it is not a different context. It is exactly as failed_trad3r said. MK

Hi Tryk, maybe you or your good ol' friend Gekko can tell me where the 'another's equivalent losses' is in following example exactly as I am not able to locate: t[0]: AAPL priced at $220 while one mill. shares outstanding - market value of $220mm all owned by you. t[1]: I am bidding for...

Hey Bolimomo, concerning fractional reserve banking theory: Theory is that the bank receives $100 holds reserve of $10 and lends the $90 left ad infinitum. Great. Just, wait. One second. Where come the initial $100 from? Some one paid as salary to me. Sure. But where did he get it from...

> Market values are not tied to currency or gold. They are made up based on the perception of what one is willing to pay for that asset. First sentence and done: And what is the one paying with when not money denominated in a currency? Clay plates? Eggs or straw? Also, please let me...

I tought we got it. We dont. I will just go on "Housing Market Is Different" (Bolimomo): > the "value" of a house, or all houses, is created through credits. The value (Why the quote signs, Sir? Is a house of no value or is it no REAL value?) is not created through credits. It is an asset...

Jes's: No matter whether there is one bid and one offer or none of both or trillions of both. What matters to the asset value is the market price which can be derived from a historical transaction price in absence of an actual bid / offer. MK

Buzz, just one addition: Of course there can be another guy who is buying another ones property in our beautiful street for just $50 since two people want to sell aggresively and so destroying our wealth back to ten times $50, which is less than what we had initially. So back to the initial...

Buzz, once more for you, Sir. YOu live in a street where ten others live. Each one of you got the same house and property so the value is equal ($100). Now your neighbor sells his property to me for $300 and I become your neighbor. Now, you got a friendly neighbor and guess what: Your...

Hey Dude, > Examples from real life... Well trillions were lost during the latest financial crisis so where is the transfer of wealth? Who took the other side of the housing crash? Where did that money go? Any trillionaires out there? Yes Sir! Mille Gracie. Very good. Thank you for that...

Bolimomo, the awareness that a simple transaction involves a buyer and a seller and thus a price which is paid and received is great (Honour goes to economics esp. "Institutional Economics" and esp. "Game Theory", bravissimo! Truly.). Of course both sums (money paid by buyer and thus money...

Scata, will eb great if you do not edit your posts as it makes my replies look curious and the thread becomes unreadable for others. Concerning the added lines: Of course there are thousands of bankrupts in history. I did not deny. Never. Again: Question was whether trading is zero sum...

> You've obviously been introduced to a concept new to you. Suggest you put on your thinking cap and marinate on it rather than trying to defend your current, flawed perception... >> the law of "entropy" Scata, please do you and me a favour and do not become impolite and do not try to...

Scata, after the quote is $19 to $20 maybe nothing happens. Maybe the quote stays that for eternity. Maybe it is changed anytime or not. Completely irrelevant for our example as there exists no "law" that it has to be zero in future. Yes, maybe it will be zero in the future, and maybe in the...

Scata, you are wrong. Imagine the transaction in my example will be the last transaction ever recorded in stock X. Anyway, quotes are provided at $19 to $21 anyway. Just no transaction anymore. Where is the way down? Where everyone loses? Another way: Imagine the asset is not a stock but a...

Dear Bill and friends, please read my post before replying. Imagine the following: Person A, B and C. Mr A and Mrs B are the lucky ones owning ten stocks of company X each. Yesterday stock of X was priced at $10. So the equity (this is assets minus liabilities, which are assumed with zero...

Hello Fred. I suppose you are implying that govt. inflates and thus reduces asset values. First of all, if asset prices are rising (means, price today is higher than price in the period before) asset values are rising, too. This is true since there is simply no other way to measure or...

My valued friends, things are different. Derivatives trading is a zero sum game (e.g. wealth / asset distribution and not creation): Some money to the exchanges, some to the clearing house and broker and split pot for both sides (e.g. buyer and seller): So, in macro view there is no addition...