Zeev's Turnips Patch-No Politics (ZEEV)

[Newly2b]

Exactly my point!

The dollars lost in the stock market were real dollars someone worked for and earned. Every trading tick represents real money changing hands. Unless one sold before the last high tick, the loss was only on paper, and was not money lost, but money one never had. That's why we take profits and take them often!

Housing equity is the same, real money, real profit, if one chooses to sell one's house. If one doesn't, it isn't money one lost because one never had it.

The last guy, the bagholder, is the one who loses. He's stuck with the overpriced stock, or a house with a high mortgage that doesn't go poof. If he declares bankruptcy, the money still doesn't go poof, because the bank must still pay back the depositor whose money they lent out to the homebuyer.

Someone always loses real money in crashes. Most likely a little of the money lost in 2000 ended up in a lot of different pockets. But real money definitely changed hands! Think about it. Isn't the real money lost (to us) every day in the stock market exactly what we traders use to pay our monthly bills?

Newly