So where would the money go?
bidask
Posts: 14,016 ✭✭✭✭✭
I manage money. I earn money. I save money .
I give away money. I collect money.
I don’t love money . I do love the Lord God.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
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<< <i>Crash the likes of 1937
Now that's scary! >>
Lol, yea realllllll scarrrryyyy....
Let's all go hide... And be scared...
In 2007 the world was worth about 80 trillion. By 2009 it was worth 40 trillion. Where did the other 40 trillion go? No one seemed to have it. So you know the answer to your question.
Knowledge is the enemy of fear
You know make up gets washed off nightly and applied daily.
Book values are just that until they are book-ended by actual buy/sell transactions. If someone is concerned about what a 30 or 50 or 70% drop in market value of one of their assets would do to them, they ought to sell it down to the comfort level. Likewise, if an asset shoots higher by 30 or 50 or 70%, it sure makes sense to sell some and book the profit.
unless, of course, one believes in a "new paradigm" and that "this time it's different"
Usually (but not always) it's not.
Liberty: Parent of Science & Industry