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bucolic_frolic

(55,595 posts)

5. The Money Multiplier operating in reverse

Reply to SleeplessinSoCal (Original post)

Tue Dec 27, 2022, 07:12 PM

Dec 2022

Money "grows" as stock markets rise the same as the Fed creating money for loans and fractional reserve banking. You bring in a dollar, you lend 90 cents of it. Now there's $1.90 in circulation.

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Where did the wealth go? [View all] SleeplessinSoCal Dec 2022 OP

A lot of it is not realized gains. Its based on market value for stocks drray23 Dec 2022 #1

Wealth doesn't just mean "cash" brooklynite Dec 2022 #2

The "wealth" wasn't really lost gratuitous Dec 2022 #3

Forget the minimum wage. multigraincracker Dec 2022 #4

The Money Multiplier operating in reverse bucolic_frolic Dec 2022 #5

VALUATION is not value. Valuations declined. Actual value is unaffected. . Bernardo de La Paz Dec 2022 #6

My 401k never really lost anything? MichMan Dec 2022 #8

Unrealized gains are not real gains, "unrealized" meaning not converted to cash or hard assets. . nt Bernardo de La Paz Dec 2022 #9

Only if you moved everything to cash. Fiendish Thingy Dec 2022 #14

Paper wealth IbogaProject Dec 2022 #7

It is possible that someone borrowed stock to sell to Elon and made money repaying the stock loan PurgedVoter Dec 2022 #10

To some extent zipplewrath Dec 2022 #11

Just means that somebody gained something. Igel Dec 2022 #16

Some wealth is little more than a mirage Shermann Dec 2022 #12

And yet, they still have Bettie Dec 2022 #13

Every time I read that KentuckyWoman Dec 2022 #15