ilaya
Can't get enough of FH
- Joined
- Jan 26, 2004
- Messages
- 1,660
so as thread says.. thats what news reporting after today.
so where has that money gone? the way the news is reporting it.. its like world has lost £3 trillion. but its not the case.
suppose you bought a painting for 100 quid.. then later had it valued and its worth 80 quid. have you lost 20 quid? no.. you have the painting... you SPENT 100 quid on it.. that money is still in the system somewhere.
the 20 quid "missing" is only because of others perception of the painting and what its worth.
and its the same with stocks and shares.. its only perception. people still own the shares.. but difference is.. they not as good to look at as the painting.
this is how we in this mess in first place. people are buying items.. thinking they have real monetary worth and treat them like currency when in fact they are not.
the 3 trillion didnt go anywhere... it never existed in the first place
so where has that money gone? the way the news is reporting it.. its like world has lost £3 trillion. but its not the case.
suppose you bought a painting for 100 quid.. then later had it valued and its worth 80 quid. have you lost 20 quid? no.. you have the painting... you SPENT 100 quid on it.. that money is still in the system somewhere.
the 20 quid "missing" is only because of others perception of the painting and what its worth.
and its the same with stocks and shares.. its only perception. people still own the shares.. but difference is.. they not as good to look at as the painting.
this is how we in this mess in first place. people are buying items.. thinking they have real monetary worth and treat them like currency when in fact they are not.
the 3 trillion didnt go anywhere... it never existed in the first place