From rigot.3@osu.edu Sat Jan 3 10:15:49 2009Return-Path: <rigot.3@osu.edu>
From niccolo.roberts@gmail.com Sat Jan 3 11:45:58 2009Return-Path: <niccolo.roberts@gmail.com>
Hi Nicholas,sources.
It's just like counterfeit money that has been seized by police. It is
wealth that is taken out of circulation. It means in principle that the
people who did not own stock and did not lose wealth can be better off,
assuming that the demand generated by this stock wealth (people spend in
part based on the wealth they hold in stocks) is replaced by other
regards,
dean
Nicholas Roberts wrote:
hi Dean
this is a really obvious question, but I have yet to find a good answer;
where does the money "lost" in the stock and housing bubbles go ?
is it destroyed ? how and where ?
is it transferred ? how and where ?
is it accumulated ? by whom, how, where ?
can we get it back ?
are there any good flow diagrams that explain this in plain terms for
regular folks...
--
Dean Baker (baker@cepr.net)
Co-Director
Center for Economic and Policy Research 1611 Connecticut Ave., NW
Washington, DC 20009
202-293-5380 (ext 114)
202-332-5218 (H)
www.cepr.net
Archive powered by MHonArc 2.6.24.