I was wondering when such big economic crisis like the one going around happens, where does the money goes? If some biggies lost it, it should have gained by some other biggies, how is that everyone is losing money at the same time ? I know nothig about economics, but its a simple practical calculation isn't it? If i lose money cause of whatever reason, someone gained it, my profit is someones loss and vice versa, so overall the effect should be zero. Money is still in market, it has not been burned or destroyed in any ways, it just changed hands, isn't it ? SO where is the money ?
SO where is the money ? What you said is actually widely discussed by many experts. The money "lose" is in the pockets of the greedy bankers.
The reason for this crisis is people are borrowing money they don't actually have. So for example I borrow $1000 from the bank, I spend it, now i need to give it back but I can't! Which leaves me at a loss, and leaves the bank at a loss. With interested I now have to start paying more, this money that I have to pay back doesn't even exist! Now images 1000's of people like this where the debt goes into its millions! A lot of this money never existed in the 1st place but we owe it back. Sorry if that didn't make sense but can't explain it any other way. P.S. While i was typing someone called "bank" was reading hmm that's funny.
It's about our "perception" that we assign a value based on various variables and parameters and our phycology at that moment.........large number of variables are invloved in this complex process of assigning value to a particular asset(e.g. Money)........and our perception changes under different circumstances and economic conditions....