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Why isn't anyone discussing what is going on?
- Thread starter NTB
- Start date
This has nothing to do with our markets. In fact, if anything it's bullish if people are moving their money out of the Asian equity markets and into ours. The money has to go somewhere right?
Quote from NTB:
Wealth is destroyed when markets move down. Not shifted into other products or markets.
Not true. Wealth is transferred, not destroyed. Check out eco 101. Money supply is not affected by gyrations in the mkt, it simply shifts capital from one party to another. Think about it, every transaction has a buyer and a seller. The buyer transferred capital to the seller. This is really not that difficult a concept to grasp. When someone sells a stock, the money does not travel into a black hole and disappear. It goes into someone's bank account.
Quote from NTB:
So is wealth isn't created when markets move up? Markets don't necessarily move down from actual 'sales'. When the market gaps down 300 points without any trades has wealth been transferred or destroyed?
Neither. Do you know what mark to market accounting is? Please say yes or this is going to be a really long night and I just don't have time to teach an ECO 101 class right now. I'm not trying to be condescending, just blunt.