How does money just disappear?
The thing is, this is a lie. Somebody did make a profit off of the Market Crisis.
The problem is, if the public knew about this, then there would be some heads rolling already.
Do you fell like your destiny is being controlled yet…?
Who’s pissed off, anybody?
mmmm… rice patties…
Enjoy the taste of them. If you’re not making over 250k a year by now, then you are now a part of the slave-class.
Wait, did you read the article? They explain it pretty well. When you own stocks, and they lose value, it’s not like the value it being given to someone, it’s that they are only worth what someone is willing to pay for them.
Suppose I have a huge tank of water, and it has a leak in it. Suppose also that you have the only plug in the world. Now, that plug will be very valuable to me (assuming the water is valuable to me). Say every gallon is worth $10, and there are a hundred gallons in the tank. If you show me the plug just when the leak starts, that plug is worth $1000 (probably a little less, because I’m going to try to make money on the water). But as the water escapes, the plug’s value goes down, so at half way I’d only offer you a little less than $500 for it.
Now, let’s say there’s another person, Tina. Suppose that I don’t know that you have the plug, and you don’t know that my tank is leaking. But Tina knows both. So, Tina offers you $300 for the plug because she thinks she can sell it to me for $500. She buys the plug and thinks “I’ve got a $500 dollar plug”. But in fact, she’s misestimated the value of the water, or my spitefulness (I know when I’m being gauged), and I’ll actually only giver her $400 dollars for the plug. He plug just lost $100! Where did it go?
Well, what’s actually happened is that it was never worth $500, that was just her best guess at the time. She may have been able to sell it to someone else for $500 at that time, but only if they too believed that it was worth $500 dollars. When the information came out that I would only buy it for $400, the plug didn’t change value, it changed its perceived value. No one made $100 dollars when the value went down.
Does that clear anything up? I thought I could make that example really simple, but it turned out it needed to be more complex to capture the market adequately to make my point.
Depreciation.
Value doesn’t vanish like that within the whole macrocosm. Somewhere, somebody gets richer as others get poorer…
The stocks crash, but the owners don’t lose a penny. This is the most common mistake of anybody attempting to understand economics. People still need to eat, drink, and play with their little toys. The value of prior commodities didn’t vanish. They usually just change hands.
Here’s my point. The owner of the water, and the land that water is situated on, is one-and-the-same. Forget plugging the hole. The water may become lost yes, but it seeps into the ground. The owner of the water, and land, didn’t lose a penny from this. He still owns the water. He still owns the land. People who are paying for his water are his slaves. It doesn’t really matter how much they pay or how much they have – he just wants his (valueless) money. Regardless of inflation, people will pay whatever the hell they can to drink it, rather than decapitate the mother fucker. Why should they be buying water in the first place?
A revolt is coming when water gets too expensive. Count on it.
Now, do you really want me to dissect your example in light of this scenario? I’m talking about the masters and slaves here. Any dollar value assigned to the water is for the slaves to buy and sell at their leisure. The owner loses nothing.
It clears everything up.
Depreciation does not mean that the value was lost. It actually implies that one person has less of it and another person has more of it.
The wealthy are getting wealthier…
Just make sure you forget this fact.
What disappeared wasn’t money but value. One example is the mortgage. A mortgage is a contract the value of which depends on the ability of the the mortgagee to pay. Many of those mortgagees CAN’T pay, so those mortgages are worthless. Where did the value go? Part of the answer was that it was never there in the first place. It was an illusion. The lost value triggers a collapse like a house of cards. At the peak of the housing bubble, many homes were sold at exorbitant prices. When the mortgages proved worthless, the value of those homes dropped. The financial system sold an bought secutites based on the alleged value of those worthless mortgages. It’s a chain reaction.
Some investors who buy devalued assets now may come out ahead in the long run. Maybe they will be the ones who profit that you are looking for.
the people who get richer are the people who sold the bad assets at bailout bargain prices…
the people who get poorer are the american people…
No, the ones who are coming out ahead are the owners, still. This is a common lesson in history and people refuse to piece the puzzle together. That’s fine. Just don’t complain in front of me that you lost everything, your children’s college fund, your retirement fund, your hedge fund, whatever. If you have money, then it is a symbol that you are buying into the slave-labor system. If you don’t own slaves already, then you’re probably going to be fucked in the long-run.
there’s a distinction to be made concerning slaves and who owns them… masters compete for labour, but not everone is a labour slave.
only the people who exist in perpetual debt are truly slaves… though i’m starting to think we should come up with a new name for them other than slaves.
I base the contemporary concept of slavery on money. The more money you own, the more responsibility is compelled against you by what that money entails, namely, an ideology of capital at the least. Secondly, indentured servitude is debt. You either own enough assets to escape this life or you do not – the have and the have-nots. Debt is a belief-system. The institution controls all of its pawns in the end. The question I am left with, is how far the ladder goes up.
Who owns the world? Give me their names and you will know your enemies – that is – if you desire “freedom”.
Money = virtual representation of wealth.
Most money does not exist as currency used to buy and sell. It exists in abstract, on computers, derived from ludicrous equations that bear no relation to life or property.
As such, it can grow and shrink by an almost infinite degree as and when the people controlling the economic system need it to do so.
It hasn’t gone anywhere, because it never existed in the first place.
I didn’t take time to read the article, I’ll throw my two cents in based on the responses.
The outstanding stock value of a company is part of their assets on the balance sheet. So if the stock drops in value, so does the value of their assets, giving them less to offset their liabilities.
At least that’s what my Series 66 book says…
I call bullshit. Maybe if you had all your stocks in a company that went bankrupt, it’s gone forever. But if you have your stock in the financial sector in general, it’s not impossible that it will regain a lot, if not all, of its value.
It’ll probably take a long time though. The financial sector was way overvalued. Thanks shadow banking system!
I’m an officer, it’s my job to control “the slave class” when they get too rowdy…
I feel sexy just thinking about it.
I get even more flushed seeing that girl in the back with riot gear…
When your country tells you to start locking up innocent people, let’s hope you don’t act so casual…
By the way, the quote in your signature… Do you actually endorse it?
The fact that you are a soldier runs contrary to any equitable definition of “freedom”…
I’m flattered that you’d refer to me as a soldier, but I’m just a donut-eating copper lol!
Infact, during cop school, a marine did walkup to me trying to get me to join. I had never shot a gun in my life, and got a 94% accuracy rating at the range every time. (It was part of the tests. We had to get atleast a 70 two out of three times)
Obviously natural talent at shooting like that should be in the marines. It runs in my family. I got a cousin who’s only sixteen and the government’s putting him under special ops to be a sniper. We’re just natural born killers lulz!
But I declined, and I gave him and honest answer. There were other guys in our class making fun of him for being a bit batshit crazy. But he just cameback from Iraq, friends had died, and he was constantly getting shot at, and for what? So people back home can disrespect him and pick on him?
So I told him exactly that. If there were more guys like me and him, I’d join in a heartbeat. But I think the majority of Americans are like the pricks who were laughing behind his back. And that’s why I’m not “patriotic” and that’s why I say 9/11 deserved to happen. I guess you could say I’m the anti-American patriot.
I’d fight for my girlfriend, I’d fight for my dog, I’d fight for my property, I’d fight four our freedom.
But I would not fight for a total stranger. They deserve to be terrorized. They’re pricks. For the sacrifice our military makes they should get good food, high class hookers, and big German masuists.
That made his day. I expected to get some lecture about patriotism. Instead I got a “If more Americans were like you we wouldn’t feel like we were doing this shit for nothing”.
To be honest, I could not care less about other people’s freedom. Only my own. And my girlfriend… But that’s an extension of me. I don’t see us as two seperate people, merely my better half.
When I think of Americans, I think of a bunchof slack-jawed morons, dry humping eachother, and laughing while they stuff their faces with a baby over some sessame seed buns.
The only halfway decent Americans are the “crazies” like westbro baptist church. Who even though I disagree with, I’m impressed by their conviction and discipline. Or our troops, who are willing to put life and limb on the line for this country and it’s ideals.
If it were up to me we wouldn’t even be in Iraq. We’d have never even gone to Aphganastain.
We’d be attacking Russia/China. They’re rising stars. There’s no way I’d let an abortion loving nation like those two jackals ascend. I don’t mind America being second fiddle, but ain’t no commies going to out-do us…
Ever read Starship Troopers? It’s actually very simaler to how I think. Infact, most of Robert E. Heinlein’s matirial is like one big Jim Profit brain fart.
The best part? Starship Troopers is reccomended reading in the marines…
It describes how, in the Terran Federation, the rights of a full Citizen (to vote, and hold public office) must be earned through voluntary Federal service. However, the franchise cannot be exercised until after honorable discharge from the Service, which means that active members of the Service cannot vote. Those residents who opt not to perform Federal Service retain the other rights generally associated with a modern democracy (e.g. free speech, assembly, etc.), but cannot vote or hold public office.
The book also explores alternative sentencing to prisons or executions. Such as humiliation, physical toture, etc. It is even said in the book that all creatures seek naturaly to avoid pain, so we can engineer morality by inflicting pain and it’s the most safest and efficient way to create a principled society.
You still never fully answered my question…
The idea that a society full of voluntary “citizens” (yes ive seen the movies) would create some sort of utopia is quite comically typical of human nature… The hilarity being egged on by your mentioning that injections of pain makes for a good society…
Things that are bad for us our brain translates into pain, which is basically a biological signal/command to obey (avoid). How can people be free while being injected with pain? Training people to behave is not freedom…
About the westboro church… I’ve been thinking about calling them… i have a few questions…
One of them would be for what reason do you laugh at innocent victims other than a seemingly sadistic sense of enjoyment?
Do you laugh at cattle when they fail to read the sign that says “SLAUGHTER HOUSE”?
First selling your stock when it drops is an idiot thing to do, that is the time to buy more. But folks that know this tell others “Oh my God quick get out you are just losing money”. So idiots sell and the bright ones slowly buy up the cheap stock. If they buy too fast then the stock rises too fast, loss of profit and hints of unfair trading arise.
I find it interesting that most countries are so intwined that since the US citizen is tightening their belts, other countries are becoming weaker. China is having major financial melt down because we are not buying toys…What irony. How to defeat the world by marketing.The only gun fired is the one in GTA. What interesting times, I hope I live long enough to see the outcome.