A Quick Teaching Lesson for People on STOCK OR BOND MARKET CRASHES - Where Does the "Money" Go?

I already told you where the $ went. You asked, I answered.
The $ went to the people who sold. What they did with it, who knows, maybe used it as toilet paper. When you buy shares, it does not gain or lose $, except when it pays dividends or interest. You can make a profit or loss when you sell your share. If you don't sell, it is neither.

lol, you're wrong. Stocks are part of the definition of wealth. Stocks aren't money, but you can trade them for money if they value.

thanks!

You need to study definitions friend.

Has this thread ever been about (real money: aka gold)? No.

I'm trying to help people understand how the (fiat system) works.

Everything I've said is true.

The fact that I've not yet RECEIVED A SINGLE (informed) response...tells me that this thread, among other things, is really needed.

This is irrespective of the anger from many of the AC's here. Why, I don't know.

Regardless, I hope it's helping some.

All the best GLP,
jk

is vagina wealth too then?

I apologize to those: as there were some responses.

a disingenuous response because you didn't understand?

It doesn't matter if we are talking about real money or fiat currency, the function is the same.
There is no function within the Stock Markets to create money(Real/Fiat). Only Banks can create Money(Fiat).
The Stock Market is only a Market for buying and selling.

If I sell you a rare Comic Book for $100, you give me $100.
If after words the VALUE of that Comic Book drops to $10 the $100 used by you to purchase that Comic Book still exists. Its in my pocket!
ONLY the VALUE(Notional) of the underlying(the Comic Book) has been destroyed.

And now everyone else holding that same shitty comic book now has to 'mark to market' and write that asset down from 100$ to $10

Now some of the assholes holding that comic book took out a loan based on that comic book's value at $100 as collateral.

Now that the comic book is marketed down 90%, they will get a collateral call which means they need to pay $90 asap.

This causes them to sell other assets which compounds the sell off and we get a crash in other markets.

inaccurate

only the banks can create Federal Reserve Notes, actual or digital, but the stock market creates other kinds of fiat money. This is why any kind of derivatives market or leveraging needs to be illegal.

Really?? What other kinds of fiat does the stock market create?

This should be good,lol

^^^Exactly.

diabolical steals it

WRONG.
The Stock Market does NOT create money.
It is a Market for trading in Financial Instruments.

Please describe the function in which Money is created in the Stock Market?


Does your local Flea Market create Money?
Does your Farmers Market create Money?


You really need to educate yourself.

Answer my question.

Wow!

I have never seen an example like this - whereby somebody that's had years of experience related to a topic, and knows what should be said (the OP) and clearly explains it and its relevance to many people, that admittedly is complex - and then several people (multiple AC's especially), jump on/jump in, and literally have no idea of what you're saying; and then attack it, with their being convinced of their words, when they haven't even yet grasped/understood the topic/narrative properly. Just, Wow.

The worst part...they don't even know what THE SUBJECT IS; forget about whether they're right or wrong on their "rebuttal": they can't even grasp the subject matter. THIS IS NOT MEANT TO BE A DIG. (I've honestly tried to explain it...but they run off on utterly unrelated and unconnected subjects, that have no relevance to the key focus; even as they are "so convinced" that they know).

This is stunning to me.

I guess I expected something different; but I don't know why I should have expected anything different. I guess I expected, at least an understanding of the base narrative of what I'm talking about; at least before they just run with their words, trying to prove (how right they are, and wrong THE TRUTH IS).

This was just a thread that attempted to summary-explain important parts of HOW THE CURRENT SYSTEM OF FIAT WEALTH WORKS WITHIN THE CONTEXT OF INDIVIDUALS' VIEWING THEIR INVESTMENT/BROKERAGE STATEMENTS FOLLOWING SERIOUS DOWNTURNS IN THESE MARKETS. (I believe this time is soon ahead.)

I really wanted to help (because I know many, many people don't understand how these funds work in these situations); all-the-more this importance (when the real GREAT FINANCIAL CRASH occurs), and the world is deciding WHAT/HOW to respond and deal with its replacement.

Even so,

All the best GLP.

I'm sure you can find more intelligent people that can match your superior intellect at DU.

It's a shame you were among the first to show your ignorance.

It didn't have to be that way. All you had to do was ask.

YOU asked. I answered. You refused my instruction. Your loss.

Well the last few people who sold have some money. The last few who bought don't. Look at anything that has a 25% gap down. The day before everyone bought and sold. They're stuck with what they did. It disappears for SOME people. Probably MOST people.

The only way to make money on stocks is to find a bigger idiot to buy for a higher price.
It's a ponzi scheme.

That's not a Ponzi scheme. Kinda, but not really.

Some stocks pay dividends, pretty good ones too. Some companies buy back stock for lots of $, like what Dell did. Some companies will buy out another company buy buying up all their stock and pay big $ for it. When bonds mature, you get your principal back, if the issuer doesn't go bankrupt.

My friend from Canada, please...I'm "biting my tongue" just out of humility (for what is facing America and the world).

I want to say this for (whoever has ears to hear)...the time ahead is not going to be easy for anyone. The world is at an inflection point: geo-politically, financially, militarily, spiritually, and personally (among relationships).

I'd ask all to think long and hard about your relationship to God. Make sure your decision is the right one. (You will make the right one if your heart is sincere and ask God to lead you to the right one. Miracles are going to happen, along with great deception at the same time. But great joy can and will happen even in the midst of great difficulty.)

I hope these threads can give some insight. I believe all are relevant (right now); regardless of timing...don't get hung up on timing. It's the events that are relevant.

Thread: BIGGEST DOW CRASH IN HISTORY (AT THE TIME)! ON ROSH HASHANAH/MON. SEPT 29, 2008 -777.7 ELEVEN YRS LATER: RH/MON. SEPT. 30, 2019

Thread: FEDERAL RESERVE BOARD Press Release (11:00 am Eastern 10/11/19): REPO'S "At least through January", 2020 WOW!

Thread: IT'S STARTING: JOINT ATTACK (w/Israel and Saudi Air force) pounding Iranian targets

Take care,
jk

Thank you kindly, OP.
You did a great job explaining the situation.

It seems to me, that since the gov. / fed is creating a
trillion dollars a year now,,, that the same amount of money
has to disappear, otherwise the rate of inflation goes up.

It can disappear in defaults, in stock losses, in foreign investments, in long term savings accounts perhaps, but it has to basically disappear from the U.S economy.

Is this correct?

Thank you Tamarack.

(By the way Tamarack is a very beautiful tree...in the Pine family: it's the only Conifer that sheds its leaves in autumn. It is also a key tree to look for if you're in need of water, as it grows in areas that would indicate surface water is very near. Its roots are also extraordinarily useful for lashing.)

On your question, in an earlier time in America - whereby vast amounts of currency DID NOT EXIST ON MASSIVE BANK SERVERS, SINCE SUCH TECHNOLOGY DIDN'T EXIST - the conclusion of (such fiat currency created by the Fed) "has to disappear, otherwise the rate of inflation goes up"...would be a correct one.

However, in today's age, the Fed has (and still does; and now per Friday's news, all-the-more, to the extreme) creates these new USD's out of cyberspace - such as like QE 1 through 3, 4, etc. that'd happened through the Obama years - and yet we never saw the price inflation. Why?

What we got: was inflation...but it was ASSET INFLATION. This is because the "money" created in record amounts, stayed ON THE BANKS' SERVERS (primarily). Hence the financial assets of all kinds, went up and up (asset inflation). But the funds, in bulk that was created, never really left those institutions' servers: thus, we never'd had price inflation on consumer goods (which is WHERE we normally think of inflation).

So, as long as those funds stay THERE (primarily) and are not pushed out into the broader economy...those specific dollars will not directly cause price inflation (for consumers).

But, it causes a bunch of other problems...that ultimately lead to a great CRASH. This crash then, can (and will) lead to great shortages...and BINGO! PRICE INFLATION AT THE CONSUMER LEVEL! So...we still get there: it's just that the pathway is a little different.

Hope this helps Tamarack.

Take care,
jk

And an aside, The beautiful Tamarack tree, has what's known as "clustered needles" (aka "leaves", since they shed)...up to 30 in one group.

Thank you again, OP.

And you know your trees!

lol
"acorns and basketballs"

I didn't know how else to call it, callit.

(And yet, this is such an important topic; affecting all Americans, every day. Even so, this is not taught in Business School: even with "Advanced Degrees"...I've not seen this in any curriculum. Absolutely stunning! No wonder, so many have an "opinion".)

This MASSIVE amount of (funds' injections now) - daily into the banking system: for as yet, insufficiently explained by the Fed, aka, "money creation" - is forcing the markets to yet again, all-time-record-highs.

All the best.

That's a great analogy, from my point view, tho I tend to see things differently, as do you.

The money system is a game, albeit a very serious game when the money is low.
People in our treadmill society are taught to know their opinions and forget that The Truth is experiencing change.

Thanks for the Good words OP ;)

You bet.

Take care friend.