March 11th, 2010 by , under nnmj.com.
where did it go to??
and do you think the banks were responsible or vice versa??
why so??
Thanks for your answers!All that "money" was fictitious Capital.
The global crash has already taken place. The capitalization of world stock markets has halved; losses on debt instruments now amount nearly $3 trillion, and debt destruction inexorably continues; there is a â œnear-disintegration of the western worldâ ™s banking system.
Banks just follow the rules of Capitalism, as this is the phase of Capitalism`s agony , this cant be prevented or "regulated".It was all paper ,stocks were over valued, and that's the problem the stock exchange and the bankers are getting greedier because they will still make their money and be bailed out by the governments.It went to money heaven! The nature of price is illustrated by an umbrella: you are at an outdoor event, the sky is blue so you will not pay $1 for an umbrella, then the clouds come over, open up and rains buckets. The $1 umbrella is now $7. The price of anything is a supply-demand outcome. No, the banks are not responsible. Look to the 1999 acts of congress which insisted that high credit risk citizens be loaned money to buy a house. No down payment, no documentation of the application for the loan. It was not reasonable to loan money to people who are largely dependent on social services to survive. Mortgage lender sales agents and the borrower both knew that the loan could not be serviced or paid on a monthly basis. Sales people cannot be expected to kill a deal just because they do not look behind the misrepresentations of the home buyer. It was a priority of the liberals in congress back in 1999 to include poor people in the home ownership picture. People who buy on the Stock market are issued with Share Certificates to the value they have bought. The money paid for shares then goes to the company they have invested in. Therefore the money is spread throughout companies worl wide.It's not so much that money is there, but VALUE is there.
If you put $10 in the market to buy a share of stock, and it does what you want, in a few years the value of the share is worth $20 and you can sell it for that.
What has happened is that economic and political circumstances have reduced the demand for stock enough that the best price you can get for the stock is much less, say $5.
The money wasn't there. The value was.
The money that was "put into" the stock market was paid to people who sold their stock.I have about 45 bucks in my pocket, the rest Idk....LOL#If you have any other info about this subject , Please add it free.# |
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