You're both right on some points here, it's just that in accounting terms VP is talking profit and loss statement, maybe also cash flow statement, while you benwood are talking balance sheet ... ?? ... not sure, but who better to judge this stuff but a logger, lol
Trades of a very small fraction of an asset class will raise/lower the supposed value of all, while comparatively little cash money has changed hands ... especially if you mark stuff to market with each trade within that class, as with stocks, and apparently banks and funds etc had to do that with dodgy debt paper for which there was little or no market for a while, but not all of which will turn out worthless in the end, as most all mortgages in most tranches will get partially paid, and many paid off completely ... it's just that in the meantime some of it forced derivative liquidation, then yee-haw the shit hits the fan
Our area here is rural but fairly settled, lots of people who've been here for generations, far less property turnover than elsewhere ... in 2004-07 only four or five sales out of a few hundred properties were enough to more than double everybody's market value and tax assessment, yet the amount of actual money involved was tiny in proportion, where it came from and where it went most people here don't know and don't care, only effect on them is taxes went up faster than when property was cheaper
Or take the example of a junior with 60m shs out, trading bid/ask 1.10/1.25, a board lot goes off at the bid than another at the ask, the market cap has just moved by nine millions but not much over a hundred bucks was involved, and it could easily have been the same hundred bucks if one player was making market in the stock |
